How to Crush Unemployment Like a Boss

[dismal]

Just so I'm clear, we're going to go ahead and move from "they cut spending" to "they didn't increase spending enough to make a difference" now?

Just to be clear you're avoiding the question.

 

[ksen]

But they didn't cut spending. You just chose to look at the general fund spending. Here's the data for spending across all funds and not just the general fund:

2006-7: $49.7 billion
2008-9: $55.1 billion
2010-11: $58.4 billion
2012-13: $61.9 billion

And that's just the money spent by the state. It doesn't count the influx of federal funds.

Yep, of which they received around $4 billion.

http://www.recovery.gov/arra/Transp...spx?stateCode=MN&PROJSTATUS=NPC&AWARDTYPE=CGL

 

[KeepTalking]

Just so I'm clear, we're going to go ahead and move from "they cut spending" to "they didn't increase spending enough to make a difference" now?

Yup, about a billion and a half is a drop in the bucket, unless you need to demonize spending by the other side of the aisle, in which case, cutting $13 million from the CDC's National Center for Emerging and Zoonotic Infectious Diseases budget just before Ebola emerges again is a fiscal conservative's wet dream.

 

[dismal]

And that's just the money spent by the state. It doesn't count the influx of federal funds.

Yep, of which they received around $4 billion.

http://www.recovery.gov/arra/Transp...spx?stateCode=MN&PROJSTATUS=NPC&AWARDTYPE=CGL

The report I linked earlier seems to include federal grants as part of the All Fund spending.

It also focuses on general fund spending because that's what Minnesota actually controls.

So, if we want to talk about "what Minnesota did" we probably should look at the general fund.

If we want to talk about what the feds did we should probably look at the federal budget.

It would be strange to argue that what the feds did is what made Minnesota's economy particularly awesome.

If the feds rained down awesomeness from the porkulus it ought to have affected all 50 states. Minnesota ought to have underperformed other states that got the porkulus and the US in general because they did non-keynesey non-awesome things on their own account.

 

[ksen]

:flail:

 

[Canard DuJour]

That answer seems kind of vague.

Which economists?

The answer is vague because "the economists" did no such thing. There is an ongoing debate among economists which has not been settled nor is it likely to be any time soon. So "some economists" view it as a "failed" theory while "some other economists" do not. Any intellectually honest person who actually has been paying attention or studied economics recently would be able to tell you this.

.."You must spread some Reputation around before giving it to laughing dog again."

 

[solutions]

Why don't you just tell me who they are?

- - - Updated - - -

This spending. Where does the money come from?

It could come from a couple of places. It could come from issuing more bonds or the Fed could simply print the money into existence.

The way you spend is extremely important and way beyond keynesian. Look at the Arrow Kurz book and their mathematical formula to create positive rates of returns. Keynesian says it doesn't matter how you spend but Arrow-Kurz says that spending on job multiplying projects and money making projects does matter. You need a positive rate of return for the spending to count. You need good debt and not bad debt.
The money can come from bonds and the dollar will drop. A weak currency is kinda good for an economy. Let other countries buy the bonds.

 

[Nice Squirrel]

Yep, of which they received around $4 billion.

http://www.recovery.gov/arra/Transp...spx?stateCode=MN&PROJSTATUS=NPC&AWARDTYPE=CGL

The report I linked earlier seems to include federal grants as part of the All Fund spending.

It also focuses on general fund spending because that's what Minnesota actually controls.

The state of Minnesota’s operating budget is organized into a number of funds. The operating budget includes the general fund and 35 other funds. Expenditures from all these funds must be authorized in legislation.