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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 R. Henderson (born November 21, 1950) is a Canadian-born American economist and author who moved to the United States in 1972 and became a U.S. citizen in 1986, serving on President Ronald Reagan's Council of Economic Advisers from 1982 to 1984.[1] A research fellow at Stanford University's Hoover Institution[2] since 1990, he took a teaching position with the Naval Postgraduate School in Monterey, California in 1984, and is now a full professor of economics.[3]

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