Economists, Win Back the Respect of Your Children, Support the Third Stimulus!
We know it's not easy being an economist these days. Everyone blames you for the fact that they are losing their jobs and their homes, and their life savings. They hold you responsible because you didn't warn the country about an $8 trillion housing bubble.
Well there's no point in mourning about the past. The point is to get it right next time. And this is next time.
The recession continues to deepen and throw more people out of work by the day. While the stimulus passed by Congress in February will be helpful, it clearly is not enough given the severity of the downturn.
So, it's time to step up to the plate and seize the opportunity. Add your name to the list of those calling for a third stimulus. It's what the economy needs and you can make your kids proud by saying it clearly.




















where's larry summers on that list...
May 29, 2009 3:37 PM | Reply | Permalink
The Chinese aren't going to allow it. And thank goodness for Communist debt holders.
I can't believe I just said that.
May 29, 2009 4:31 PM | Reply | Permalink
Shooter,
so will they lower the value of the dollar against the yuan (i.e. stop "manipulating" their currency)? That would be a real twofer -- we get stimulus from spending money and we get further stimulus from the improvement in our trade balance.
Let's go for it!
May 29, 2009 5:22 PM | Reply | Permalink
I thought John Taylor said it well. This next financial crisis will be much worse than the one we are currently suffering the effects of.
The average deficit for the next TEN YEARS is close to a trillion dollars. We can either raise taxes on everybody or inflate our way out of the problem. Yikes
(http://www.ft.com/cms/s/0/71520770-4a2c-11de-8e7e-00144feabdc0.html?nclick_check=1)
May 30, 2009 8:04 AM | Reply | Permalink
Dream on. If I were China, I'd be buying commodities with their dollars before Treasuries take the big plunge. Which by the way, is the only explanation I can find that makes sense for rising commodity prices.
Aside from that, people are going to insist on seeing some result, somewhere, that the previous stimulus helped out someone besides Goldman... before tossing another trillion down the drain.
May 29, 2009 5:53 PM | Reply | Permalink
Whatever is happening in our economy right now, we must stay positive and find ways and solutions to these. Financial planning, for example, may help us, although it goes a long way. You're never too young or too old to start financial planning. If you start putting a little into savings on a regular basis and start doing a little budgeting, it can pay off. Laying off the credit cards will help the personal finances out tremendously. Watching your spending is a great idea, and being cautious and avoiding overdraft charges can keep you out of needing any online payday loans or faxless payday loans. Credit spending is what leads a lot of people into debt, and it's better to avoid needing payday loans all the time with a little financial planning.
May 30, 2009 1:44 AM | Reply | Permalink
You have to be kidding!!
The ad inviting to buy a pre-owned Aston Martin which appears together with your article only stresses further how clueless we have all become.
Since we are trying all kind of crazy measures to solve the economic crisis, why don't we try a TARP for the American people for a change by raising all salaries by 30%.
The Federal and Local governments would get more taxes, the banks would get more deposits and hence would not need tax dollars, people would buy more stock and ignite a bull market, GM would sell more cars and avoid chapter 11,people would be able to pay back their debts reducing the toxic debt, the real state market would recover, home values would increase reducing further the toxic assets, the Chinese would be encouraged to buy more Treasury Bills and benefit from the recovery in the demand of consumer goods, consumer confidence would be restored, etc. etc.
Further, we don't even need to print more money. In order to avoid inflation the government could issue tradeable "Wage Increase Tax Credit Certificates" to all businesses and pay for the "Peoples TARP" from the future tax revenue increase that this solution would create.
Last but not least; the banks would have a new tradeable paper to play with.
How about doing that for our children and even ourselves!!
May 30, 2009 4:33 AM | Reply | Permalink
Perhaps I misread him but I think Samuel Brittain comes pretty close to agreeing,
May 30, 2009 10:39 AM | Reply | Permalink
Hey, Dean Baker, where the hell are you, man?...Why aren't you in the Administration?
I know, this riff's been done before (ala the song-a-day guy for Paul Krugman) but really!
May 30, 2009 10:07 PM | Reply | Permalink
Why not try something new, and not just hand more money to the wealthy bankers, hoping they will share it with us? Why not, for example, eliminate the one cent and 5 cent coins? Is that relevant? Maybe, if it reduces business expenses, reduces government expenses, etc. (I always love the etc.'s) And, enacting a good health care plan, with, at least, a public insurance option, but preferably with a single payer, would also reduce business expenses, the people's expenses, and improve our national health while doing so. Then, perhaps a Energy Independence "Manhattan Project" to create jobs for the scientists and engineers who are underemployed or unemployed. And, of course more etc.
May 30, 2009 10:38 PM | Reply | Permalink
Most of the economists I know (including myself) did in fact warn that US household debt was unsustainably high, savings rates unsustainably low, federal debt the worst in history and, as a result, the trade deficit expanding at a dangerous rate. The fact that financial sector commentators get paid to enthuse about bubbles neither negates the warnings nor excuses their irresponsible behavior.
As for the Renminbi, consider the analogy of the alcoholic and the corkscrew. The corkscrew enables, but does not compel, irresponsible behavior. China’s impact on US interest rates enabled, but did not compel irresponsible behavior.
Stimulus packages: why oh why doesn’t anyone call a spade a spade anymore? RESCUE PACKAGE, not stimulus.
May 31, 2009 1:14 AM | Reply | Permalink