About that ‘multiplier’

Criticism of the new state budget that takes effect Friday often has centered on the prospect of thousands of lost jobs in North Carolina. Critics have pointed to a “multiplier” effect from government spending that generates thousands of jobs.

During his presentation Monday to the John Locke Foundation’s Shaftesbury Society, Duke University’s Michael Munger offered a highly technical economist’s response to the claims about a multiplier effect.

Those who actually know what they’re talking about see that lower tax rates that allow consumers, business owners, and entrepreneurs to spend, save, and invest more of their own money will lead to more jobs in North Carolina.

Mitch Kokai / Senior Political Analyst

Mitch Kokai is senior political analyst for the John Locke Foundation. He joined JLF in December 2005 as director of communications. That followed more than four years as chie...

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