The Economist weighs in on state finances

One of my favorite newspapers (their term–it sure looks like a magazine) views the current fiscal disasters of the U.S. states (e.g. California) through the Keynesian lens here. Basically being forced constitutionally to balance their budgets, the states are being forced to raise taxes and cut spending–exactly the opposite of what John Maynard Keynes would have recommended under the current circumstances.