The Other McCain

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Veronique de Rugy Deserves A Medal

Posted on | April 8, 2010 | 5 Comments

by Smitty

George Mason University’s Mercatus Center seems beset with difficulties upholding ‘the Narrative’. Veronique de Rugy, in particular, seems mired in un-fluffy questions and hard, cold facts about all of that stimulus spending.

Her new update to the Stimulus Facts working paper, after engaging in proper academic dialog on the topic, the way the AGW climate change carbon clowns never have, boils down to noticing that the stench of decay is present in the stimulus spending for a reason.

As it turns out, when controlling for state capitals and a host of other potentially relevant variables, we find that the original findings still hold. We learn a few other things, too:

  • First, how and where the money is spent doesn’t seem to be related to unemployment or decline in employment in the district where it is spent.
  • Second, the district’s party affiliation matters in where the money is spent. (We still don’t know how much it matters compared to other factors.) The average Democratic district receives 81 percent more than the average Republican district. Even after taking out the money spent through state capitals, the average Democratic district receives at least 30 percent more than the average Republican district.
  • Third, whether a district has part of a state capital in it is an important factor in how stimulus money is spent. However, controlling for this factor, or even taking the money going to state capitals out altogether, doesn’t negate the finding that the district’s party affiliation matters in where the money is spent.
  • Finally, how long the district’s representative has been in office seems to have a small but significant impact on how the money is spent (this is a new finding, as well).

There is still much more to learn on the question “How are stimulus funds being spent and why?”

The more I dig into this, the more important the question seems.

This research is crucial for driving a stake through the heart of the mugging in Keynsian clothing that is this Administration’s policy.

However, what’s as important is the ‘so, what?’ question of how we structure the country to minimize the concentration of power. The reason that the DC cart thinks itself the economic horse, for all the cart’s lack of sensory organs and real driving power makes useful forward motion problematic, is that nothing else can lay claim to being the economic horse. This November’s election must restore the proper order of things.

Category: Economics

Comments

5 Responses to “Veronique de Rugy Deserves A Medal”

  1. Paco
    April 8th, 2010 @ 11:27 pm

    I’ve been reading and posting links to some of her stuff, too. She’s got the brains I’d like to have if it didn’t mean that I’d have to completely replace my collection of fedoras.

  2. Paco
    April 8th, 2010 @ 6:27 pm

    I’ve been reading and posting links to some of her stuff, too. She’s got the brains I’d like to have if it didn’t mean that I’d have to completely replace my collection of fedoras.

  3. Veronique de Rugy shows that stimulus money was allocated for political gain « Wintery Knight
    April 8th, 2010 @ 9:19 pm

    […] here on National Review. (H/T The Other McCain via […]

  4. Wintery Knight
    April 9th, 2010 @ 5:12 am

    Thanks for finding this post. It’s great to have research to show the real Obama beyond mere opinions.

  5. Wintery Knight
    April 9th, 2010 @ 12:12 am

    Thanks for finding this post. It’s great to have research to show the real Obama beyond mere opinions.