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Got $2 billion to spare if it has a chance to turn around the economy?
You probably do, what with all of those hundreds of billions in repaid TARP funds you were talking about using for a "second" Stimulus. Given that the first one didn't do much good, it seems like a dumb idea to try to same old Keynesian trick again. When it comes to recessions, the rule is: If first you don't succeed, try, try a different economist...
I was listening to Marketplace on NPR last night and they were talking about this prominent Conservative judge who believed in the Chicago School of Economics where you leave the market alone and all that jazz and he is now a Keynesian.
Chicago School of economics post-crisis | Marketplace From American Public Media (http://marketplace.publicradio.org/display/web/2010/01/07/pm-chicago-school-q/ - broken link)
I think the stimulus Congress passed was a pretty bad idea. It basically gave a lot of money to state and local governments. It's not to say they didn't need the money but it prevented a lot of job losses but didn't necessarily create a lot of new jobs.
I would rather we try to help out American manufacturing companies and try to generate demand for their products. China is helping their manufacturing industry out A LOT, I don't see why we can't either.
There needs to be funds available for people who want to start up their own manufacturing company and we need to help them be competitive in the global market.
I was reading in Mother Jones this week about what the bailout for the banks could have provided if spent otherwise. It made you want to cry.
There are couple of obvious flaws in the argument, the first being that as of December 2009 only 12% of the stimulus has been allocated, the second is that I have yet to see any data presented that would compare the state of the economy without even that 12 percent having been spent.
As for the writers suggestions... well it took two pages to get beyond the rhetoric before getting to them, only to find this nugget:
"So, why not follow the lead of your chief of staff? Rahm Emanuel reportedly leaned on the House finance committee to agree to a permanent stay of the financially onerous Sarbanes-Oxley regulations for companies valued less than $75 million."
Am I to believe that the chief of staff has, as we say these days, gone rogue? If not, would it be wrong to assume that Emanuel is following the President and not the opposite?
Perhaps, the other suggestions, suspending stock option expensing, a temporary hold on on capital gains, and "a whole bunch of other things" might be worthy of discussion, but before decrying Keynesian economics I would like to see it actually applied.
The Keynesian multiplier is working but, because it started on an essentially bankrupt economy, it is multiplying a very small number. This will improve over time as the economy recovers. We need to use the paid back TARP funds to support states, cities and towns having financial difficulties so they can save jobs and work on infrastructure projects. A job saved is the same as a job gained and a bridge replaced is an investment in our future.
Last I checked, the GDP was rising as were the DOW and NASDAQ and unemployment claims had been declining. Things are slowly but surely healing. Economic recovery is a marathon not a sprint.
The Keynesian multiplier is working but, because it started on an essentially bankrupt economy, it is multiplying a very small number.
You base this theory upon what evidence?
What IS working is the economic business cycle in its natural recovery mode. The "Kenyian" multiplier is actually slowing down what would have been a faster recovery..
Quote:
Originally Posted by twista6002
Last I checked, the GDP was rising as were the DOW and NASDAQ and unemployment claims had been declining. Things are slowly but surely healing. Economic recovery is a marathon not a sprint.
The GDP ONLY rose by the amount the government put into the economy. That is NOT a recovery. The DOW and NASDAW, are stock indicators, and increasing BECAUSE unemployment numbers are high.. UPS just announced today they are laying off 1800 employees to increase their profit margins for this quarter..
Where do you guys come up with this false sense of "recovery" when the facts are in your face that its not. It will of course, but it sure in the hell isnt due to fabulous economic theories of the president, or the Democratic Congress, who chose to take money out of the economy, in order to put it back in..
What IS working is the economic business cycle in its natural recovery mode. The "Kenyian" multiplier is actually slowing down what would have been a faster recovery..
The GDP ONLY rose by the amount the government put into the economy. That is NOT a recovery. The DOW and NASDAW, are stock indicators, and increasing BECAUSE unemployment numbers are high.. UPS just announced today they are laying off 1800 employees to increase their profit margins for this quarter..
Where do you guys come up with this false sense of "recovery" when the facts are in your face that its not. It will of course, but it sure in the hell isnt due to fabulous economic theories of the president, or the Democratic Congress, who chose to take money out of the economy, in order to put it back in..
That's how Keynesian Economics works. It worked during the Great Depression and it worked during multiple European recessions. What would the GOP solution be? Ignore it. Certainly worked for Herbert Hoover
That's how Keynesian Economics works. It worked during the Great Depression and it worked during multiple European recessions. What would the GOP solution be? Ignore it. Certainly worked for Herbert Hoover
Actually that isnt what brought us out of the Great Depression..
War got us out of the depression, not taxing the hell out of producers to give to non producers, not creating legislation to push companies outside the country, not mandating more expenses upon the citizens. Where on gods earth do you get this information?
That's how Keynesian Economics works. It worked during the Great Depression and it worked during multiple European recessions. What would the GOP solution be? Ignore it. Certainly worked for Herbert Hoover
Cut taxes, as you can see we've been doin fine since Reagan!
*economy crashes multiple times, rich get richer and poor get poorer*
Okay okay maybe that didn't go so well.
*bombs some countries*
Ah ok, economy's moving again.
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