Tuesday, February 3, 2009

Pinata Politics

Stimulus Package: If You Jump Halfway Across a Chasm You Fall Into the Abyss

Jeffrey Sachs, the Columbia University economist who was instrumental in
transitioning the economic system of the former Soviet Union, is also no fan of
the stimulus bill, calling it a "a fiscal piñata," an "astounding mish-mash of
tax cuts, public investments, transfer payments and special treats for
insiders," and "a grab bag of hasty short-run spending." He warns that "without
a sound medium-term fiscal framework, the stimulus package can easily do more
harm than good." This is especially true, he says, "if we allow further tax cuts
during a time of fiscal hemorrhage, or give into 'bipartisan' demands to make
the Bush tax cuts permanent." ...keep reading...


Dade said...

Well, Heather Ann, I'm of two minds about the stimulus bill. On the one hand, I'm worried that it doesn't make wise use of the money. On the other, if Obama doesn't win this fight, it is going to be very hard for him to win any more down the road.

Ni quiero yo oro. Quiero el regalo de un futuro con esperanza.

Mike said...

I've been reading about the Great Depression and hoping it will not be renamed the First Great Depression.

In spite of all the people put to work building park trails and shooing birds away from government buildings, the claim is that WWII was the happy event that finally turned things around.

If their porkulus packages fail, I am confident our politicians are willing to cook up a nice war to save our hides.

Shus li said...

...and the U.S. government is in the middle of two wars plus has their fingers in many more. Since those events have failed to create money for anyone other than some major corporations, there won't be a war to come along to save the economy at the cost of the people.

The more I hear and read about this package, it seems like it will be another giveaway to the corporations. Plus, they are printing money for it which means that the possibility of inflation will increase.

This is going to prove to be interesting times.

Eugene said...

The above should have been Eugene, and not Shusli, who is my wife.

Heather Ann said...

Thank you all for your comments. I am glad the bill passed, and I do hope it has the intended effect. Only time will tell for sure. I wish they would stop printing extra money - I lived the the hyperinflation in Argentina in 1989 - not fun!