Very Good News from Libya...
Juan Cole Says He Told Us So

Yes, Virgina, the Recovery Act Worked Best in Texas

... even though the unemployment rate did rise to 8.3%.

Jared Bernstein:

Over the last few years, government jobs have been awfully consequential in Texas: 47% of all government jobs added in the US between 2007 and 2010 were added in Texas.... [T]he state lost only 53,000 jobs.  But looming behind that number are large losses in the private sector (down 178,000) and large gains (up 125,000) in government jobs. Gov Perry has a funny way of going about that “inconsequential” thing.  According to many news accounts from back in the Recovery Act days:

Turns out Texas was the state that depended the most on those very stimulus funds to plug nearly 97% of its shortfall for fiscal 2010, according to the National Conference of State Legislatures.

Now, I’ve got no problem with a state government using Recovery Act funds to retain or create jobs.  In fact, the figure and quote above shows Texas to be following a traditional Keynesian game plan: as the private sector contracts, turn to the public sector to temporarily make up part of the difference...

Comments