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The Pro-Stimulus Manifesto... - Grasping Reality with Both Hands

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Grasping Reality with Both Hands The Semi-Daily Journal of Economist J. Bradford DeLong: Fair, Balanced, RealityBased, and Even-Handed Department of Economics, U.C. Berkeley #3880, Berkeley, CA 94720-3880; 925 708 0467; delong@econ.berkeley.edu.

Economics 210a Weblog Archives DeLong Hot on Google DeLong Hot on Google Blogsearch August 09, 2010

The Pro-Stimulus Manifesto... Stimulus Now: A Manifesto by Harry Evans, Joseph Stiglitz, Alan Blinder, Other Leaders - The Daily Beast: Fourteen million unemployed represents a gigantic waste of human capital, an irrecoverable loss of wealth and spending power, and an affront to the ideals of America. Some 6.8 million have been out of work for 27 weeks or more. Members of Congress went home to celebrate July 4 having failed to extend unemployment benefits. We recognize the necessity of a program to cut the mid- and long-term federal deficit but the imperative requirement now, and the surest course to balance the budget over time, is to restore a full measure of economic activity. As in the 1930s, the economy is suffering a sharp decline in aggregate demand and loss of business confidence. The urgent need is for government to replace the lost purchasing power of the unemployed and their families and to employ other tax-cut and spending programs to boost demand. Making deficit reduction the first target, without addressing the chronic underlying deficiency of demand, is exactly the error of the 1930s. It will prolong the great recession, harm the social cohesion of the country, and continue inflicting

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The Pro-Stimulus Manifesto... - Grasping Reality with Both Hands

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unnecessary hardship on millions of Americans. Watch Laura Tyson and Alan Blinder Explain the Manifesto on Bloomberg Brad DeLong on August 09, 2010 at 01:07 PM in Economics, Economics: Federal Reserve, Economics: Finance, Economics: Fiscal Policy, Economics: Macro | Permalink Favorite

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Comments marc sobel said... Where is the Shrill One ? Reply August 09, 2010 at 01:56 PM bakho said... Unfortunately, the Austerians have already grabbed the media narrative. This is a good start but it will take a lot of effort to push back against the pain caucus. Reply August 09, 2010 at 02:46 PM bakho said... The media interviewer keeps repeating the CW about "uncertainty" and interrupting their counter-narrative. That prevents them from getting their message across. What would it take for the media to adopt the narrative that business is not hiring because they have all the workers they need to meet current demand? (not gonna happen) Reply August 09, 2010 at 02:52 PM Alex said... Others are adding their names: http://www.thedailybeast.com/blogs-and-stories/2010-07-20/reboot-americamanifesto-supporters-swells-to-40/ Why haven't you added your name, Brad? Reply August 09, 2010 at 06:02 PM Michael said... "Why haven't you added your name, Brad?" Here is why Paul Davidson, Jamie Galbraith, & Robert Skidelsky did not add their names. Statement on Evans’s Stimulus Letter from Davidson, Galbraith, & Skidelsky http://www.newdeal20.org/2010/07/21/statement-on-evanss-stimulus-letter-fromdavidson-galbraith-skidelsky-15498/

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Exchange between Paul Davidson and Sir Harold Evans regarding the stimulus programs and the deficit http://rwer.wordpress.com/2010/07/20/exchange-between-paul-davidson-and-sirharold-evans-regarding-the-stimulus-programs-and-the-deficit/ Reply August 10, 2010 at 04:31 AM vtcodger said... ***Fourteen million unemployed represents a gigantic waste of human capital, an irrecoverable loss of wealth and spending power, and an affront to the ideals of America.*** Back in my youth when Republicans were isolationist and could do simple math and we were wondering why Roast Mammoth was disappearing from restaurant menus, we used to think that fewer working hours and having more leisure time was a reasonable social objective. Now we have it and for some reason find it uncomfortable. May I suggest that we don't have an employment/job creation/spending problem. We have a resource allocation problem. The cure: Income redistribution. Lots and lots of income redistribution. Of course, that might cause some of the wealthy to seek gainful employment thereby slightly exacerbating the employment problem because in most cases minimum wage won't pay their cellphone bill much less mooring fees and other necessary expenses, but I expect that in the unlikely event that happens, job creation will become a national priority. Reply August 10, 2010 at 07:57 AM Comments on this post are closed.

Economists Debate The Philosophy Behind British Budget Cuts

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NPR (blog) - Oct 21, 2010 Brad de Long, an economist at UC Berkeley, and a prolific blogger, is quoted in the Times as mourning the dismissal of Keynes. ... Related Articles » « Previous Next »

Economists: Juicebox

Moral

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Paul Mafia: Krugman Ezra Klein Mark Thoma Matthew Cowen and Yglesias Tabarrok Spencer Chinn and Ackerman Hamilton Dana Brad Setser Goldstein Dan Froomkin

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Philosophers: Hilzoy and Friends Crooked Timber of Humanity Mark Kleiman and Friends Eric Rauchway and Friends John Holbo and Friends

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The Pro-Stimulus Manifesto... - Grasping Reality with Both Hands  

Economics 210a Weblog Archives DeLong Hot on Google DeLong Hot on Google Blogsearch August 09, 2010 The Semi-Daily Journal of Economist J. B...