This continues a collection of links the people have been sending me on our long financial problems. For part I, click here.
Pieces on economic strategy:
- National business climate — I like the argument (linked to in the story) that we should get away from special business tax breaks and work for a lower overall rate instead. This makes sense at the state level as well as nationally.
- More on what is really needed to put the economy on a sustained growth path — “pro-growth tax reform, housing finance reform, increased infrastructure investments, greater support for education and research, job retraining programs, removal of outdated interstate competition barriers and stronger social safety nets.” The piece laments the focus on short term options rather than long term growth.
- A more developed proposal for long term growth — a small improvement in growth would have a huge impact on deficit reduction. Echoes the need for tax simplification, but also investments in infrastructure, education and science. I basically buy this vision of what needs to be done.
- Stock market perspective — the damage done by tax/regulatory policy uncertainty.
- A perspective as to why stimulus is hard to make work in this recession — “even though the private sector clearly isn’t going to spend all that much [because of desire to clean up balance sheets], the public sector is being stopped from spending by ideological imperatives [and so isn’t spending enough to stimulate].”
Pieces on state/local fiscal integrity:
- Understanding sovereign financial exposure — while the argument of the piece speaks to national sovereign data, I appreciate the point that our state financial picture is worse than it looks because of rising future liabilities due to aging.
- A portrait of the collapse of civic life in Greece and its financial implications — not that we are there yet . . . but there are warning signs.
- Buffet on municipal bond risks — risks are big if you believe that the federal government would let them fail. Compare
Meredith Whitney on the condition of the states — Massachusetts looks only fair.