Friday, August 21, 2009

The NYT demonstrates the Economics of Bureaucracy

A standard part of the literature in Public Choice economics is that bureaucracies act differently than private firms in economic downturns. In 1978, the opponents of Proposition 13 argued that if the proposition was adopted that public employment would be decimated. In reality, the number of public employees at the state level actually went up by a fairly significant margin.
Evidently the stimulus package seems to have worked quite well for public employees.

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