The New York Times reports,

While the private sector has shed 6.9 million jobs since the beginning of the recession, state and local governments have expanded their payrolls and added 110,000 jobs

For some reason, Tyler buys into the Paul Krugman “Fifty little Hoovers” propaganda that a big threat to the economy is state and local cutbacks. I confess that ten years ago I thought that a great thing to do in a recession was stimulate state and local spending, but that was back when I saw macro in hydraulic terms and not in Recalculation terms. From a Recalculation perspective, trying to expand the state and local sector is not such a fine idea.