A new study for the Mercatus Center at George Mason University uses an economic model that examines regulation’s effect on firms’ investment choices. Using a 22-industry dataset that covers 1977 through 2012, the study finds that regulation—by distorting the investment choices that lead to innovation—has created a considerable drag on the economy, amounting to an average reduction in the annual growth rate of the US gross domestic product (GDP) of 0.8 percent.
A new study published by the Mercatus Center at George Mason University ranks each state’s readiness for an economic downturn based on the size of its rainy day savings fund and budget surplus.
July 7, 2015
California’s cash position was very poor for FY 2013. When including all forms of cash, the state had 1.29 times the amount of cash available to cover short-term expenses, which was almost three times less than the national average. On a fiscal year basis, California had sufficient revenues to cover expenses and ran a slight surplus. But the long-term picture showed several warning signs. Long-term liabilities accounted for nearly 80 percent of the state’s total assets. The largest area of fiscal risk was in California’s state-run pension systems, which had a staggering $636 billion shortfall when calculated on a risk-free or guaranteed-to-be-paid basis.