State Revenues Rising

Yes, revenues are going up, but my guess is actual state spending is not. In other words, the rate of state ‘borrowing to spend’ including capital budgets has likely slowed? That’s a net drop in aggregate demand- higher taxes without that much higher spending. Also, spending federal funds is already figured in aggregate demand calculations […]

Tax Receipts Rebound as 15 Biggest States See Gain

>    >   (email exchange) >    >   On Tue, Mar 30, 2010 at 2:27 PM, Jason wrote: >    >   State tax receipts are reportedly up… >    Yes, federal looking like they’ve bottomed as well. Definitely looks like activity has bottomed. And still feels like we are going the way of Japan, but too early to tell. >    >   Granted we […]

Schwarzenegger Seeks Obama’s Help

[Skip to the end] Still haven’t seen any discussion of a per capita revenue distribution to all the States? $500 per capita would give California maybe $19 billion and be ‘fair’ to all the States. It would also support aggregate demand (spending power) output and employment, which presumably is a national priority? Feel free to […]

California to issue IOU’s

[Skip to the end] Tell Arnold to make them eligible for payment of state taxes and they can forever use the IOU’s for state purchases in place of $US July 1 (Reuters) — California prepared on Tuesday to resort to issuing IOUs as the giant but cash-strapped U.S. state struggled to approve a new budget […]

Letter to the Governor of California

[Skip to the end] Letter to the Governor of California Dear Governor Schwarzenegger I note that the State of California is planning to issue IOUs (registered warrants) from tomorrow (July 2) to ease your cash situation in the face of the political dispute you are having over the budget with the Democrats. My latest blog […]


[Skip to the end] Rather than let the states cut essential services and lay off employees with unemployment over 9%, I would give all the states an immediate $500 per capita distribution from the federal government. It is the same voters and the same taxpayers, so per capita is the way to go. This gives […]

California May Pay With IOUs for Second Time Since Depression

[Skip to the end] (email exchange) right, as I’ve been suggesting for a long time, all states should always pay only with iou’s. that way they spend first, then collect taxes, just like the federal govt. and they can deficit spend without a funding imperative as well. >   >  On 12/5/08, Jason wrote: >   >  My opinion […]