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What Motivated Newsom’s Relaxation of Lockdowns?

Summary:
Newsom Finally Recognizes Tradeoffs Governor Newsom of California announced yesterday that he is relaxing the statewide lockdown sooner than he had said he would. What gives? I think Newsom is finally recognizing tradeoffs. He started the fiscal year with an expected budget surplus. He now expects a state government deficit of .3 billion. He had wanted a bailout from his Democratic California partner Nancy Pelosi. Her .2 trillion bailout passed in the House by a narrow 208-199 vote but is probably dead on arrival in the Republican-controlled Senate. My guess is that he understands that he’s not getting a big bailout. So he can’t shift the cost onto the shoulders of federal taxpayers. HT2 Steven Greenhut

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Newsom Finally Recognizes Tradeoffs

Governor Newsom of California announced yesterday that he is relaxing the statewide lockdown sooner than he had said he would.

What gives? I think Newsom is finally recognizing tradeoffs. He started the fiscal year with an expected budget surplus. He now expects a state government deficit of $54.3 billion. He had wanted a bailout from his Democratic California partner Nancy Pelosi. Her $3.2 trillion bailout passed in the House by a narrow 208-199 vote but is probably dead on arrival in the Republican-controlled Senate.

My guess is that he understands that he’s not getting a big bailout. So he can’t shift the cost onto the shoulders of federal taxpayers.

HT2 Steven Greenhut

David Henderson
David Henderson is a British economist. He was the Head of the Economics and Statistics Department at the OECD in 1984–1992. Before that he worked as an academic economist in Britain, first at Oxford (Fellow of Lincoln College) and later at University College London (Professor of Economics, 1975–1983); as a British civil servant (first as an Economic Advisor in HM Treasury, and later as Chief Economist in the Ministry of Aviation); and as a staff member of the World Bank (1969–1975). In 1985 he gave the BBC Reith Lectures, which were published in the book Innocence and Design: The Influence of Economic Ideas on Policy (Blackwell, 1986).

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