Oct 1st, 2011
Kevin Drum argues that the coming double dip will be wholly owned by the Tea Party and their sympathetic (or fearful) agents in the 112th Congress. The kicker:
"If we want them to, both monetary and fiscal policy can have plenty of bite left. Bottom line: If we plummet into a second recession, it will be solely the fault of fanatical conservatives in Congress who refuse for reasons both partisan and ideological to acknowledge that we can do something about this. It'll be the Tea Party Recession of 2011."
I think it's worse than Drum realizes. We're not dealing with a group that's simply opposed to changes in "fiscal and monetary policy" now. We're dealing with a collectively delusional cabal that is opposed to centralized intervention ever. Their meme of "not picking winners" has devolved into an unthinking scheme that ensures greater hardship for most Americans.
So, yeah. They own it.
Showing posts with label double dip. Show all posts
Showing posts with label double dip. Show all posts
Saturday, October 1, 2011
Sunday, August 28, 2011
Austerity Now?
Aug 28th, 2011
The Economist laments the current obsession with reducing debt in Western economies generally, but their harshest critique is directed at our own:
"America... has done virtually nothing to deal with its medium-term deficit, but on current policy will see the biggest short-term tightening of the big rich economies next year. That would have been a poor choice even in a reasonable recovery. Given the economy’s weakness, it looks daft. But it could be fixed. The congressional supercommittee charged with finding ways to trim the ten-year deficit as part of the recent debt-ceiling deal could agree on a bolder package of entitlement cuts and new revenue, while Barack Obama and the Republicans could limit the short-term squeeze by extending the temporary payroll-tax cut and boosting spending on things like roads and school repairs."
I part ways with their editors on issues of "entitlements" but they are otherwise dead on.
Matthew Desmond notes how eerily similar this preoccupation with debt reduction at the expense of all other policy initiatives is to the disastrous path once taken by the Hoover Administration.
Alas, we are now in a climate dominated by zealots who proceed as if they worship Murray Rothbard's historical revisionism and laissez-faire extremism. That is to say, the debate has been hijacked by people who actually don't believe in government directly stimulating the economy in any form to alleviate the crisis.
The Economist laments the current obsession with reducing debt in Western economies generally, but their harshest critique is directed at our own:
"America... has done virtually nothing to deal with its medium-term deficit, but on current policy will see the biggest short-term tightening of the big rich economies next year. That would have been a poor choice even in a reasonable recovery. Given the economy’s weakness, it looks daft. But it could be fixed. The congressional supercommittee charged with finding ways to trim the ten-year deficit as part of the recent debt-ceiling deal could agree on a bolder package of entitlement cuts and new revenue, while Barack Obama and the Republicans could limit the short-term squeeze by extending the temporary payroll-tax cut and boosting spending on things like roads and school repairs."
I part ways with their editors on issues of "entitlements" but they are otherwise dead on.
Matthew Desmond notes how eerily similar this preoccupation with debt reduction at the expense of all other policy initiatives is to the disastrous path once taken by the Hoover Administration.
Alas, we are now in a climate dominated by zealots who proceed as if they worship Murray Rothbard's historical revisionism and laissez-faire extremism. That is to say, the debate has been hijacked by people who actually don't believe in government directly stimulating the economy in any form to alleviate the crisis.
Saturday, August 6, 2011
What We Need
August 4th, 2011
The Economist, that once staid and altogether traditionally conservative bastion of reasonable economic thought, tells it like it is while issuing a common sense call for action... again.
"Extension of the payroll tax cut and emergency unemployment benefits would improve confidence, reduce projected fiscal tightening over the next year, and ease the suffering of the unemployed. The double-dip is at the door. Only quick action can send it packing now."
This isn't about entitlements. It's about the government not actively increasing the crisis of demand.
The Economist, that once staid and altogether traditionally conservative bastion of reasonable economic thought, tells it like it is while issuing a common sense call for action... again.
"Extension of the payroll tax cut and emergency unemployment benefits would improve confidence, reduce projected fiscal tightening over the next year, and ease the suffering of the unemployed. The double-dip is at the door. Only quick action can send it packing now."
This isn't about entitlements. It's about the government not actively increasing the crisis of demand.
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