"Got to kick at the darkness till it bleeds daylight"
Friday, February 20, 2009
10,000 Little Hoovers
[2009.02.22 - minor grammatical error fixed]
The Herbert kind, not the vacuum cleaner kind. As Krugman observes, in Fifty Herbert Hoovers, most of the state governments cannot borrow when they desperately need to. And they pass this down to all the local governments, all the authorities and cities that depend on state services. Urban areas are cutting transit. Just about every state is going to cut education. And so on. (Bet they figure out how to keep paying for prisons, bah!) And these cuts are penny-wise and pound-foolish. Transit services save government and private money; without them, people will be spending money on automobiles, and states and cities on roads. Education is more of a long-term investment, but it's important one, and cutting it will prolong the depression.
This sucks. Hmmm, maybe they're the other kind of Hoovers after all.