Posted by Brian Moore under business
This is one of these times where something fits my confirmation bias so perfectly, that I’m hesitant to believe it’s true: (via Megan McArdle)
Recent research at Harvard Business School began with the premise that as a state’s congressional delegation grew in stature and power in Washington, D.C., local businesses would benefit from the increased federal spending sure to come their way.
It turned out quite the opposite. In fact, professors Lauren Cohen, Joshua Coval, and Christopher Malloy discovered to their surprise that companies experienced lower sales and retrenched by cutting payroll, R&D, and other expenses. Indeed, in the years that followed a congressman’s ascendancy to the chairmanship of a powerful committee, the average firm in his state cut back capital expenditures by roughly 15 percent[.]
Fifteen percent! That’s… insane. I would like to see a lot more takes on this data. It seems too bad to be true. I could probably read the actual paper here, and figure them out, but that’s hard work, and I’m lazy.
Posted by Brian Moore under Uncategorized
I have enough misgivings about this whole charade without comments like this:
British Prime Minister Gordon Brown heralded the emergence of a “new world order” Thursday as the G-20 issued details of an “unprecedented” package of measures to tackle the global economic crisis.
I already don’t think I can stand the image of world leaders standing around heroically deciding to spend 1 trillion dollars of their citizens’ money while congratulating themselves on their “noble and historic commitment.” Using phrases like “new world order” without an ounce of satire is just too much.
“One Trillion Dollars” is just getting to be the unit of measure for stimulus packages.
The cure for an unexpected disaster is a well-planned pre-meditated disaster. I give up.