Latest posts by Jesse Hathaway (see all)
- Congressional Lawmakers Can Help Stop IRS’s Abuse of Small Businesses—But Will They? - August 15, 2017
- Why Aren’t We Spending Money for Roads on Roads? - August 12, 2017
- ‘Fair’ Wealth Surcharges Penalize Hard Work, Success - August 4, 2017
In today’s episode of The Heartland Daily Podcast, managing editor Jesse Hathaway talks with University of Arkansas-Little Rock economics professor Erick Elder about a new study, published by the Mercatus Center at George Mason University, about how well state lawmakers are preparing for the next economic recession.
States’ rainy-day funds, Elder explains, are used by lawmakers to save up for economic recessions. By putting away surplus taxpayer revenue during good economic times, state governments can help reduce the impact of recessions on government services, reducing the need for higher taxes during those lean times. Some states are being fiscally responsible by building up emergency reserves, like the ant in Aesop’s fable, Elder says, but other states are putting taxpayers at risk by failing to prepare for the worst.