I can’t determine whether the handling and effects of the federal fiscal stiimulus presented in this case study of Silver Springs, Maryland is typical or atypical or whether it’s fair or unfair. However, I do find it interesting, especially since it jibes so well with the empirical studies of the ARA done by Stanford’s John B. Taylor.
If true, my suspicion would be that Keynesian strategies might be more effective in a more centralized economy than ours. And one that’s smaller and less complex. Neither Dr. Taylor’s findings nor this case study claim that Keynesian stimulus can’t work only that it didn’t work as well as its proponents might have hoped. Better coordinated action than we can accomplish with our very decentralized system is necessary.
That and that the consequence of requiring Davis-Bacon wages is to render fiscal stimulus very tardy, indeed. They’re a bureaucrat’s dream.