Monday, November 05, 2007
Can States Have "Dutch Disease"?
Reading Alan Greenspan's book. He discusses "dutch disease"--the adverse consequences of having oil or similar natural wealth. Thought of it when I read this post on Alaska by Kevin Drum. Apparently Alaska is riding its oil wealth for all it's worth, and not developing the tax structure needed to support a good society once it's gone. Hence the "Bridge to Nowhere"--if Uncle Sugar will fund our infrastructure, fine.