tagged w/ stimulus plan
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![Needed: A Fiscal Framework--Not a Stimulus [Extended version]: Scientific American](http://i2.crtcdn1.net/images/spacer.gif)
The economic debate in the U.S. regarding the fiscal stimulus package has revealed, once again, the soft underbelly of modern economics. It’s perhaps inevitable that a public debate over the allocation of trillions of dollars of taxes and spending should be cacophonous and confused, but the poor quality of the scientific discussion about the fiscal stimulus plan is unjustified. Economists have not helped the public to sort out crucial issues in the debate, leaving public policy to a hurried mish-mash of conflicting interests.
The stimulus debate has centered heavily around the question of “bang for the buck,” that is, whether tax cuts or spending increases would produce more jobs. This perspective is very limited and misleading, however: the implications of tax cuts, for example, depend importantly on whether they are perceived to be temporary or permanent. A temporary tax cut is more likely to be saved, or used to pay down credit-card debt, than consumed, a lesson demonstrated by the failed $100 billion tax-rebate stimulus last spring.
There is a far more important point, however. The choice of spending versus taxes should turn first and foremost on the purposes of government, or on what economists quaintly call “the allocation of resources.” It’s silly to debate whether investing in a $100 million bridge creates more jobs than a $100 million tax cut if we really need the bridge! The American Society of Civil Engineers has credibly documented for years the crumbling state of U.S. infrastructure—roads, bridges, water supply, waste treatment, mass transit, toxic waste cleanup, dams and levees—and the urgent need for more than $2.2 trillion of investments for our wellbeing and competitiveness.
http://www.scientificamerican.com/article.cfm?id=needed-a-fiscal-frameworkThe economic debate in the U.S. regarding the fiscal stimulus package has revealed,... more
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According to the Bureau of Economic Analysis, the economy contracted at an annual rate of 5.4 per cent in the last quarter of 2008 and 6.4 per cent in the first quarter of 2010. Even allowing for the so-called “Keynesian multiplier”—in an economy operating below full-employment, increases in government outlays can generate further increases in income and spending—the Obama stimulus was never likely to boost the economy enough to prevent unemployment from reaching ten per cent.
Let’s be clear, however, about what this means. It doesn’t imply, as some Republicans have claimed, that the stimulus money was wasted. As far as they went, the Obama tax cuts and spending increases helped to produce a genuine (and largely unexpected) economic turnaround. After contracting sharply for two quarters, the economy is now growing again, albeit not quickly enough for the fifteen million unemployed Americans. Most forecasters expect third-quarter G.D.P. growth, which will be announced at the end of the month, to come in at three per cent, or more. Most of the credit for this upturn must go to near-zero interest rates and various other quasi-socialistic methods the Fed has introduced to boost the credit and housing markets, but fiscal policy also played a role.
Now, however, the Fed is preparing to eliminate some of its emergency support measures, and further support from the fiscal side might well be necessary to prevent the dreaded “double-dip.” Fortunately, such help is already on its way. This, surely, cannot have been an accident.According to the Bureau of Economic Analysis, the economy contracted at an annual rate... more
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Governor Haley Barbour of Mississippi has publicly threatened to reject money included in the recent stimulus bill that will extend and expand unemployment insurance benefits. These benefits will help thousands of Mississippians, including part-time workers. Governor Barbour says that extending benefits will cause an increase in business taxes. He is wrong.
As the poorest state in the nation, Mississippi can least afford to put partisan politics ahead of people’s basic needs. Mississippi desperately needs its rightful share of the stimulus package. The money that Governor Barbour is rejecting will help 39,600 hard working families weather this recession.
Please stand proudly with the people of Mississippi by signing this petition to tell Governor Barbour to put the needs of our hardworking citizens ahead of partisan politics: http://standingwithmississippi.org/.
You can also show your support by joining the Facebook Cause here: http://apps.facebook.com/causes/266831/33917124?m=6d54c0aaGovernor Haley Barbour of Mississippi has publicly threatened to reject money included... more
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Washington, US - President Barack Obama promises billions of dollars to small business owners by using $730 million from the stimulus plan to reduce small-business lending fees.Washington, US - President Barack Obama promises billions of dollars to small business... more
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"President Obama on Wednesday signed a $410 billion spending bill to keep the government running through the end of the fiscal year, despite complaints that the package was filled with thousands of earmarks.
The president earlier defended the bill, which he called "imperfect" but necessary. But at the same time he announced new reforms he said would prevent wasteful earmarks in the future.
The president did not make any pledge to eliminate earmarks or reduce them. Rather, he and House Democrats announced new reforms to subject them to greater scrutiny and transparency.
"Done right, earmarks have given legislators the opportunity to direct federal money to worthy projects that benefit people in their district, and that's why I have opposed their outright elimination," Obama said. "But the fact is that on occasion, earmarks have been used as a vehicle for waste, and fraud and abuse. Projects have been inserted at the 11th hour, without review, and sometimes without merit, in order to satisfy the political or personal agendas of a given legislator, rather than the public interest.""President Obama on Wednesday signed a $410 billion spending bill to keep the... more
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This is a guest post written by Reid Hoffman, CEO and Founder of LinkedIn. Reid is an investor in over 60 web ventures including Digg, Facebook, Flickr, Friendster, FunnyOrDie, Ning, Last.fm, Six Apart and Technorati.
Below is a selection of his comments and you can click to the Washington Post to read the entire article:
1. Small business loans. Apply a micro-lending model that has proved successful in developing countries, extending credit lines up to $50,000.
2. Abolish the limit on H-1B Visas. Remove the cap on H-1B visas and impose a 10 percent payroll tax beyond the benchmark salary for each visa. Then channel the proceeds from the payroll tax into US re-education programs.
3. Match funds for venture capital and angel investors. Match up to $100 million in stimulus funds for qualifying venture and angel investments if they create jobs in the US. Let these investors keep their normal return plus 50 percent of the returns on the matching funds, while the other half goes back to the government to revitalize further investment.
Continue to the Washington Post to read the full details of his proposals.This is a guest post written by Reid Hoffman, CEO and Founder of LinkedIn. Reid is an... more
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What planet does this guy live on, and how can we educate him on reality?!? Somebody help me out here. Is this man really saying that he wants to be lied to, and that we all need to be lied to in order for this to get better? Does he not see how applicable his statements are to the Bush administration? Moreso, even, than the Obama administration??What planet does this guy live on, and how can we educate him on reality?!? Somebody... more
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Such a strange thing for Jindal to say, especially since he hails from the state that was ravaged by Katrina. (Which, ironically, was the subject of its own equally awkward moment). The volcano monitoring program was on a list of Republican talking points at one stage, but virtually none of them ran with it, apparently figuring that there were much better scabs to pick at.
And I know: I'm piling on a little. This was going to be an awfully tough speech to deliver, almost no matter what its content. With the possible exception of Jim Webb in 2007, the minority party reaction speeches have always tended toward extreme lameness.
I just want to know who wrote the speech and who vetted it. Because it was manifestly at odds with the talents of the guy who delivered it.
-- Nate SilverSuch a strange thing for Jindal to say, especially since he hails from the state that... more
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Is it a coincidence that that the governors who are rejecting monies from the stimulus plan also have the highest unemployment rates among people of color in their respective states?
Joan Walsh comments, "Bobby Jindal's Louisiana? The black unemployment rate is 9.4 percent; the white rate is 3.3 percent. Rick Perry's Texas? The black rate is 9.7 percent; the rate for whites, 4.3 percent."
Curious? Read the article and comment!Is it a coincidence that that the governors who are rejecting monies from the stimulus... more
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Recovery.gov is a website that lets you, the taxpayer, figure out where the money from the American Recovery and Reinvestment Act is going. There are going to be a few different ways to search for information. The money is being distributed by Federal agencies, and soon you'll be able to see where it's going -- to which states, to which congressional districts, even to which Federal contractors. As soon as we are able to, we'll display that information visually in maps, charts, and graphics.Recovery.gov is a website that lets you, the taxpayer, figure out where the money from... more
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President Obama delivered his weekly radio address during which he focused on his vision for revitalizing the economy and the passage of the economic stimulus package by both Chambers of Congress.
For the New Stimulus Plan 2009 tracking, please log into;
www.recovery.govPresident Obama delivered his weekly radio address during which he focused on his... more
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Are we going to use the same old ideas to resolve an old problem?
Are we Americans are going to continue to support the same wrong business that brought and it is bringing this Country down as;
1. Polluted Public Transportation
2. Polluted After Market Business
3. The War that cost us Trillions
4. The wrong system of economic Debt
5. The wrong system of Education that it is based on debt
6. The wrong system of Health Care that it is based on debt
7. The cost of operating business as usual
These are some of the simple questions in regards to this economic stimulus plan.
It is the poor being fooled again? What do you think?Are we going to use the same old ideas to resolve an old problem?
Are we Americans... more
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Notwithstanding reports that all economists are now Keynesians and that we all support a big increase in the burden of government, we the undersigned do not believe that more vernment spending is a way to improve economic performance. More government spending by Hoover and Roosevelt did not pull the United States economy out of the Great Depression in the 1930s. More government spending did not solve Japan’s “lost decade” in the 1990s. As such, it is a triumph of hope over experience to believe that more government spending will help the U.S. today. To improve the economy, policymakers should focus on reforms that remove impediments to work, saving, investment and production. Lower tax rates and a reduction in the
burden of government are the best ways of using fiscal policy to boost growth.
http://www.cato.org/special/stimulus09/cato_stimulus.pdfNotwithstanding reports that all economists are now Keynesians and that we all support... more
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Why doesn't Obama choose George Soros or Paul Krugman as the Commerce Secretary instead of someone like Gregg? This bipartisanship policy of him doesn't make sense to me at all. Bipartisanship at this critical time means to sacrifice the country, to have those in the government who made this mess in the first place.Why doesn't Obama choose George Soros or Paul Krugman as the Commerce Secretary... more
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The bad mortgages that got the current financial crisis started have produced a terrifying wave of home foreclosures. Unless the foreclosure surge eases, even the most extravagant federal stimulus spending won't spur an economic recovery.The bad mortgages that got the current financial crisis started have produced a... more
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With record numbers of job losses mounting month after month the stimulus plan is being judged on whether it will both create jobs and stop the hemorrhaging. As the Senate wrangles over the details of the American Recovery and Reinvestment Act, the debate has been largely reduced to one of public spending versus private sector tax cuts. But it may not be so simple. According to Dean Baker, the author of Plunder and Blunder: The Rise and Fall of the Bubble Economy, the Obama plan is a good start but it doesn’t go far enough.With record numbers of job losses mounting month after month the stimulus plan is... more
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GRITtv
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What separates Bernie Madoff from the titans of Wall Street? For one, he doesn’t have the backing of Uncle Sam. According to some, Madoff’s Ponzi scheme pales in comparison to the scams on Wall Street. As Dean Baker writes in his new book, Plunder and Blunder, "Top executives in the financial sector fueled the housing bubble in ways that probably would have landed less prominent citizens in jail."What separates Bernie Madoff from the titans of Wall Street? For one, he doesn’t... more
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GRITtv
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3 years ago
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Thus far, the conversation about the stimulus plan has been reduced to spending vs. tax cuts. But what really creates jobs? Today everything you need to know about the American Recovery and Reinvestment Act with Dean Baker of the Center for Economic and Policy Research, Louis Uchitelle, the author of The Disposable American: Layoffs and Their Consequences, Teresa Ghilarducci Director of the Schwartz Center for Economic Policy Analysis at the New School, and Irasema Garza a member of Obama's transition team and the President of Legal Momentum.
Post your comments and questions at www.GRITtv.org.Thus far, the conversation about the stimulus plan has been reduced to spending vs.... more
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GRITtv
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