“Now, however, as a majority of states have begun collecting tax revenues that are on par with or even above expectations, they face some measure of Michigan’s situation — trying to sort out whether the worst is really over, whether it is safe to start spending again, or whether a rainy day fund may be the prudent course.” (New York Times)
Wait, so “severe” (read: some) budget cuts didn’t send these states into permanent, irreversible decline? Inconceivable!
FEE Timely Classic
“The Depression You’ve Never Heard of: 1920-1921” by Robert P. Murphy