I like your analysis (though I disagree with the amount you want spent). A couple of comments:
only actor with pockets sufficiently deep to go largely unaffected through the economic woes.
And the only actor able to reach out to the rest of the world to lend us money.
Note that the House bill has some expenditures extend to 2019.
Take a look at the Senate version. The analysis goes out to 2019, but the last few years have negative appropriations - meaning that our investments will be paying us back by that time.
This CBO analysis (warning, pdf - it's long too, so just skim it or take my word) says that while the recession will probably end sometime this year, economic growth will be very sluggish until about 2015 due to the nature of this recession. Remember that while the recession itself will remove about $1T of demand from the economy, that $1T won't just magically come back as soon as we're no longer technically in a recession.
Here is the fear: excessive government spending on the tail end of the recession...Remember
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You want to be bipartisan? Then actively court Republicans with the last little bit, or at least include them in the discussion instead of dictating priorities.Right. Because it's not like President Obama met with Republican House and Senate leadership. Or invited people of both parties to the White House to talk about the bill. Or called congresspeople individually to shore up support and hear concerns (of both Republicans and blue dog Dems). Or that House Democrats threw out a bunch of progressive legislation in favor of capital gains tax cuts and the like. Right? None of that ever happened
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With private-side demand supressed the government is the primary actor that can push through large amounts of money in a coordianted fashion. The private side cannot do this becuase to do so would require each of the millions of actors in the system to almost simulatneously come to the same conclusion, and it becomes the classic investment paradox: everyone wants to be the second investor, noone wants to be the first, because the first investor bears all the real risk. With a Keynesian approach the government becomes the first investor in a sense.Hey, I know you're busy so feel free not to take time to respond to this comment here. Though if you don't, I'm hoping we can maybe still talk about this tonight over beer and BSG
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Comments 5
only actor with pockets sufficiently deep to go largely unaffected through the economic woes.
And the only actor able to reach out to the rest of the world to lend us money.
Note that the House bill has some expenditures extend to 2019.
Take a look at the Senate version. The analysis goes out to 2019, but the last few years have negative appropriations - meaning that our investments will be paying us back by that time.
This CBO analysis (warning, pdf - it's long too, so just skim it or take my word) says that while the recession will probably end sometime this year, economic growth will be very sluggish until about 2015 due to the nature of this recession. Remember that while the recession itself will remove about $1T of demand from the economy, that $1T won't just magically come back as soon as we're no longer technically in a recession.
Here is the fear: excessive government spending on the tail end of the recession...Remember ( ... )
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