Krugman Was Right, As Usual
A friend of mine said “we’re seeing quite a bit of improvement as a result of the stimulus package. Maybe other local governments just aren’t as good as ours.”
The stimulus was nowhere near as big as it needed to be in order for it to have been effective country-wide. The economists who were asking for a bigger stimulus have been vindicated while people simply blame Obama for not doing enough.
Krugman on a different topic, but good points anyway:
There was a window early last year when Obama could have pushed for a bigger stimulus and could have pushed for a major recapitalization of the banks with public funds, so as to encourage more lending; that recapitalization would probably have required nationalizing a couple of institutions. At the time, the administration wasn’t at all focused on health care, which it was leaving largely up to Max Baucus.
But the conservatives, including both DINO and Republicans, demanded a smaller stimulus and fought against any further action that could have helped stimulate lending to jump start the economy.
Maybe, maybe, a relatively small job-creation program could have been pushed through this fall. And maybe, if it had been sufficiently unorthodox — say, a job-creation tax credit — it might have had enough bang for the buck to make a noticeable difference.
Small job-creation programs would have done wonders for a lot of states. Well funded public works projects would have helped a lot of states that are especially ailing in civic and social infrastructure. It would have been a direct injection of job creation and it would have had a direct ripple effect to go along with the bigger stimulus.
But, again, DINO/Republicans were angsty.