Friday, November 20, 2009

A view on a second stimulus

Good interview with Texas professor James Galbraith on the idea of the scope and structure of a second stimulus.

Yes, a SECOND stimulus. The first has been maybe 30-40% enacted, and is riddled with fraud, but he thinks we need another.

What's more, he thinks the most important thing to do in a stimulus is to "shore up" state and municipal budgets with federal money. A simple way of letting fiscally responsible states bail out their neighbors next door, who've gifted away the next generation's taxes to public employees' outrageous union demands.

Oh and he admits that in return for a public sector bailout we'll see a "lower standard of living" as the huge debts wreck the dollar.

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