Monday, February 16, 2009

News Analysis that doesn't make me crazy

Over at Firedoglake Prof. James K. Galbraith's post What is to be Done? Next Steps for Economic Recovery is a good start.
His analysis of the stimulus package
We have a bill. In the most likely case, it will slow the collapse but not stop or reverse it. And it will come into effect alongside a bank rescue plan that stands very little chance of reviving the credit markets. So we have one part of a recovery plan that is helpful but probably insufficient, and another part that most likely will not work at all. The prospects for an early exit from the slump are therefore not encouraging, just yet.

His straight-to-the-heart-of-it comments on the moderate senator's actions are refreshing in their clarity and sensibility.
It is difficult to know what the so-called moderate Senators were thinking. Do they have special insight into this crisis? Do they have their own forecasters, with deep understanding and good track records in these matters? Do they have their own models? Do they have, in other words, any ground for believing that less than $800 billion, spread over two years, will be enough to bring the economy back? If so, they weren't saying so, so far as I could tell.

He has some cogent and simple recommendations for next steps which make a lot of sense.

1 comment:

  1. What a mess that stimulus bill is. No one can read those 1100 pages, geesh. I don't think anyone has, matter of fact.

    I found out people like me receiving Social Security will only get a "one-time" stimulus check of $250.

    I have mine spent already. *visions of sugar-plums dancing in my head* ............amongst other things.