Wednesday, February 18, 2009

Some States Are Getting Screwed - An Update

Marginal Revolution posted the graphic below in this post.

If you recall, I blogged on the noticable fact that states with low unemployment rates seemed to be getting more stimulus spending. I picked out the most egregious examples. Alex Tabarrok plotted all of the states. As you can see from the scatterplot below, there is a negative correlation between unemployment rates and per capita infrastructure spending in the stimulus. That is, states with low unemployment are, on average, getting more money than states with higher unemployment.

I guess those kinds of mistakes happen when our illustrious President screams that the sky is falling as his party passes the largest increase in spending in the history of the world be damned a proper review.

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