Category Archives: Economy

Budget deficit has declined over the past year

Fierce Planet Posted on by

After all the constant hand-wringing about the deficit from many feckless politicians, you might be surprised to learn that the deficit declined 13% over the past year. We face a lot of economic problems, but I remain unconvinced that the deficit is, at this moment, one of them. Edit to add: That said, it seems perfectly legitimate to me to use the deficit as a cudgel against Republicans who demagogue about the deficit when it comes to spending, only to ignore it completely when it comes to tax cuts. Pointing out that kind of hypocrisy is always good.

Continue reading →

Economic Policies

Fierce Planet Posted on by

AFSCME is right. The Democrats have better (though imperfect) economic policies. Edit to add: Krugman today explains exactly how disastrous Republican economic policies would be. Edit to add: Also see today’s post in Timothy Noah’s Slate series on Income Inequality. He shows that inequality consistently rises under Republicans and falls under Democrats, and in addition the economy grows more slowly under Republican control.

Continue reading →

A Fundamental Failure

Fierce Planet Posted on by

Must read: this post on the economy by Karl Smith at Modeled Behavior. …This is a failure of our basic institutions of production. The job of the market is to bring together willing buyers with willing sellers in order to produce value. This is not happening and as a result literally trillions of dollars in value are not being produced. He goes on to emphasize that it’s not misallocation, it’s not government misconduct, it’s trillions of dollars of potential wealth that is simply not being created. Period. What he doesn’t, perhaps can’t, fully add is the solution to this disconnect. … Continue reading →

Elizabeth Warren

Fierce Planet Posted on by

I simply don’t believe we’ll ever see her as the head of the Consumer Protection Agency. Which is too bad, because she has a singular understanding of the importance of that post, and of the ways in which our economy as it is currently structured works against ordinary middle-class people and those who aspire to the middle class. But the owners, the super-rich for whom our economy really works, and their compliant enablers in the Congress, will never allow a real progressive in that post. It might cost them too much money. I’d be delighted to be wrong, but I … Continue reading →

Disapproval of what?

Fierce Planet Posted on by

Gallup finds that people generally approve of President Obama’s handling of the stimulus bill. These findings, based on Gallup Poll interviews conducted Feb. 6-7, underscore the degree to which Obama appears to be maintaining the upper hand over his opponents from a public opinion perspective as he and congressional leaders wrangle over the precise form and substance of a new economic stimulus plan. (Recent Gallup polling also shows that a slight majority of Americans in general favor the idea of passing a stimulus plan of around $800 billion, a sentiment that has stayed constant over the last several weeks.)… In … Continue reading →

More on Tax Cuts

Fierce Planet Posted on by

Elana Schor, writing for TPM-DC, a new Talking Points Memo blog, gathers evidence of why tax cuts are ineffective as economic stimulus. …Mark Zandi, a Republican economist who advised John McCain’s presidential campaign, has been stressing this point for months. Zandi’s research showed a corporate tax cut delivering $0.30 in real GDP growth for every $1 invested, an alternative minimum tax patch delivering $0.48 for every $1 invested, and a regular tax rebate delivering anywhere from $1.02 to $1.28 for every $1. Compare that to aid to state governments, which Republicans have roundly criticized: $1.36 for every $1 invested. Infrastructure … Continue reading →

Bum Rushing

Fierce Planet Posted on by

This is a statement made at a White House press conference yesterday. Deputy Press Secretary Tony Fratto is speaking. Q I’m just trying to reconcile two points here. On the one hand, you said that there are a lot of members who rightly have questions and acknowledge that this is obviously a huge package, but on the other hand, you’ve emphasized several times that it’s critical that it be done quickly this week and that it be done clean. You know, for lawmakers who are — I guess I’m asking, isn’t there something to be said for being careful beyond … Continue reading →

No Blank Check for Paulson

Fierce Planet Posted on by

That $700 billion they’re talking about is our money, you know. Time to contact your Representatives and Senators, and make sure our money isn’t thrown down the rabbit hole. If you need some background on better ways to approach this crisis, read Krugman on what should be done, Robert Reich, who explains the best way to structure a bailout,and Noriel Roubini on why we need a Home Owner’s Mortgage Enterprise (and what that means). Demand accountability, oversight, transparency, and safeguards on our money. Not one penny for the CEOs! Update: Hey! Maybe Henry will buy your shitpile too!

Continue reading →