Re: re Driftglass's "Jobs" post

We should have done more of the things that were traditionally done during and after recessions:

1) Extending unemployment benefits until the unemployment rate was close to normal.
2) At least maintaining (and not cutting) food stamp benefits.
3) Increased (not cutting) aid to states and cities so that they didn't have to lay off huge numbers of teachers and other public employees.
4) Substantial increases in infrastructure spending while interest rates are low.
5) Substantial increases in financial aid for education and training to keep people off the street and lay a foundation for smarter growth in the future.

Etc.

Basically, you increase demand by giving money to people who will spend it. Yes, the banks needed to be rescued, but that was not sufficient. As Atrios says almost every day - http://www.eschatonb...-happen-when.html

Too many famous economists decided to forget standard economics and buy into the stories from the no-nothings on the right who screamed about inflation. It was a willful destruction of the knowledge painfully gained after the Great Depression and the various crises after.

We know how to get out of this mess. The instructions are in the classic introductory economics textbooks. Our politics is too broken at the moment to apply them. (Though we haven't forgotten quite as many lessons as the Europeans...)

Things are different when the economy blows up after a bubble. Austerity makes things worse. You have to spend, and spend a lot, to get out of it. When the recovery is well underway, then you slowly reduce the stimulus. And yes it does work and yes it doesn't lead to Zimbabwe!!!11 - see the USA after ~ 1940 - 1972.

Will Congress do anything? Hard to say. There are too many Teabaggers still in power, but some things will probably be done on the margins. As long as Europe doesn't collapse and as long as China doesn't fall into a recession (which I don't see how they avoid forever), we'll probably be firing on all cylinders by 2015 or so. But it shouldn't have taken 8+ years to crawl out of the hole the Republicans created...

My $0.02.

Cheers,
Scott.

Post #366,645 by dmcarls 11/23/12 2:41:43 AM Reply	Re: re Driftglass's "Jobs" post >>> " Government policies that encourage demand..." While I generally agree with your comments, Scott, how is the government supposed to encourage demand ? Do you see Congress doing anything constructive in this regard? What form would such encouragement take? Just curious, not trying to be a pain.
Post #366,648 by boxley 11/23/12 7:45:22 AM Reply	you dont understand Government's job is to spend money as fast and as nonsensically as they can while borrowing it at zero interest. If that doesn't fix the economy its the republicans fault. Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free American and do not reflect the opinions of any person or company that I have had professional relations with in the past 57 years. meep
Post #366,651 by Another Scott 11/23/12 9:40:53 AM Reply	You do realize that governments create money, no?
Post #366,656 by boxley 11/23/12 10:39:11 AM Reply	yes, Zimbabwe and Weimar come to mind Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free American and do not reflect the opinions of any person or company that I have had professional relations with in the past 57 years. meep
Post #366,649 by boxley 11/23/12 7:45:22 AM 11/23/12 7:45:35 AM Reply	dupe Government's job is to spend money as fast and as nonsensically as they can while borrowing it at zero interest. If that doesn't fix the economy its the republicans fault. Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free American and do not reflect the opinions of any person or company that I have had professional relations with in the past 57 years. meep Edited by boxley Nov. 23, 2012, 07:45:35 AM EST Expand All History
Post #366,652 by drook 11/23/12 9:58:41 AM Reply	What do you think it would cost ... ... to fix every pothole and rehab every bridge in the interstate highway system? -- Drew
Post #366,657 by boxley 11/23/12 10:39:44 AM Reply	triple tarp but a much better investment Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free American and do not reflect the opinions of any person or company that I have had professional relations with in the past 57 years. meep
Post #366,653 by Another Scott 11/23/12 10:05:36 AM Reply	Things like those done after earlier recessions. We should have done more of the things that were traditionally done during and after recessions: 1) Extending unemployment benefits until the unemployment rate was close to normal. 2) At least maintaining (and not cutting) food stamp benefits. 3) Increased (not cutting) aid to states and cities so that they didn't have to lay off huge numbers of teachers and other public employees. 4) Substantial increases in infrastructure spending while interest rates are low. 5) Substantial increases in financial aid for education and training to keep people off the street and lay a foundation for smarter growth in the future. Etc. Basically, you increase demand by giving money to people who will spend it. Yes, the banks needed to be rescued, but that was not sufficient. As Atrios says almost every day - http://www.eschatonb...-happen-when.html Too many famous economists decided to forget standard economics and buy into the stories from the no-nothings on the right who screamed about inflation. It was a willful destruction of the knowledge painfully gained after the Great Depression and the various crises after. We know how to get out of this mess. The instructions are in the classic introductory economics textbooks. Our politics is too broken at the moment to apply them. (Though we haven't forgotten quite as many lessons as the Europeans...) Things are different when the economy blows up after a bubble. Austerity makes things worse. You have to spend, and spend a lot, to get out of it. When the recovery is well underway, then you slowly reduce the stimulus. And yes it does work and yes it doesn't lead to Zimbabwe!!!11 - see the USA after ~ 1940 - 1972. Will Congress do anything? Hard to say. There are too many Teabaggers still in power, but some things will probably be done on the margins. As long as Europe doesn't collapse and as long as China doesn't fall into a recession (which I don't see how they avoid forever), we'll probably be firing on all cylinders by 2015 or so. But it shouldn't have taken 8+ years to crawl out of the hole the Republicans created... My $0.02. Cheers, Scott.

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