Is there any objective basis for assessing what percentage of the stimulus consists of "special interest nonsense"? I think to ask this because CEPR just put out a piece noting that everything the Republicans have been complaining about amounts to less than 2% of the package.
On Thu, Feb 5, 2009 at 6:38 PM, Michael Perelman <[email protected]> wrote: > I do not pretend to be an expert on stimulus plan, but it seems to be too > little, misdirected, too much infected with tax cuts, and filled with > special interest nonsense. > > The Republican speak authoritatively as if tax cuts are the best way to get > investment going, but real investment, the kind that results in the > production of goods has been terribly anemic in spite of decades of tax > cuts. > > I do note that one of the most direct ways during the recession is to > eliminate costs, including debts, that hold the economy back. Letting > assets falling value raises the rate of profit, once the realization sets > in that the asset prices have hit bottom. > > Leaving banks fail and writing off debts will cause some dislocation, but > they will leave both the economy and society stronger. > > In terms of getting money spent, putting it in the hands of the poor and > the unemployed seems far more reasonable likely to create spending than to > give to the rich, who may just pump up asset prices once they feel > confident, undoing some of the stimulus. > > In terms of public works, Gray Brechin, has been doing remarkable research > showing how much the public works of the New Deal have contributed to the > country to this present day. The government has the opportunity to sell > bonds at less than 3%. Interest costs of public works represent a > significant part of the total costs. Taking advantage of the bargain > basement cost of credit now represents a major savings, increased jobs, > plus the opportunity to make a significant contribution to both the economy > and society. > > > -- > Michael Perelman > Economics Department > California State University > Chico, CA 95929 > > Tel. 530-898-5321 > E-Mail michael at ecst.csuchico.edu > michaelperelman.wordpress.com > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l > -- Robert Naiman Just Foreign Policy www.justforeignpolicy.org [email protected] _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
