Re: [Pen-l] Stimulus Porn: Commonsense Observations

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

What about the loan guarantee for nukes -- The Republicans aren't 
complaining.  I suspect what we have to look out for is what the 
Republicans like.


On Thu, Feb 05, 2009 at 06:46:41PM -0500, Robert Naiman wrote:
> Is there any objective basis for assessing what percentage of the
> stimulus consists of "special interest nonsense"? I think to ask this
> because CEPR just put out a piece noting that everything the
> Republicans have been complaining about amounts to less than 2% of the
> package.
> 
> On Thu, Feb 5, 2009 at 6:38 PM, Michael Perelman
> <michael@xxxxxxxxxxxxxxxxx> wrote:
> > I do not pretend to be an expert on stimulus plan, but it seems to be too
> > little, misdirected, too much infected with tax cuts, and filled with
> > special interest nonsense.
> >
> > The Republican speak authoritatively as if tax cuts are the best way to get
> > investment going, but real investment, the kind that results in the
> > production of goods has been terribly anemic in spite of decades of tax
> > cuts.
> >
> > I do note that one of the most direct ways during the recession is to
> > eliminate costs, including debts, that hold the economy back.  Letting
> > assets falling value raises the rate of profit, once the realization sets
> > in that the asset prices have hit bottom.
> >
> > Leaving banks fail and writing off debts will cause some dislocation, but
> > they will leave both the economy and society stronger.
> >
> > In terms of getting money spent, putting it in the hands of the poor and
> > the unemployed seems far more reasonable likely to create spending than to
> > give to the rich, who may just pump up asset prices once they feel
> > confident, undoing some of the stimulus.
> >
> > In terms of public works, Gray Brechin, has been doing remarkable research
> > showing how much the public works of the New Deal have contributed to the
> > country to this present day.  The government has the opportunity to sell
> > bonds at less than 3%.  Interest costs of public works represent a
> > significant part of the total costs.   Taking advantage of the bargain
> > basement cost of credit now represents a major savings, increased jobs,
> > plus the opportunity to make a significant contribution to both the economy
> > and society.
> >
> >
> > --
> > Michael Perelman
> > Economics Department
> > California State University
> > Chico, CA 95929
> >
> > Tel. 530-898-5321
> > E-Mail michael at ecst.csuchico.edu
> > michaelperelman.wordpress.com
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> >
> 
> 
> 
> -- 
> Robert Naiman
> Just Foreign Policy
> www.justforeignpolicy.org
> naiman@xxxxxxxxxxxxxxxxxxxxx
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-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com
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