Quarterbacks Get Out 'Hail Mary' Economy Passes

WSJ ^ | August 9, 2010 | John Hilsenrath

[lbryce]

July's dismal jobs report poses a dangerous dilemma for the country's officials.

The government has exhausted traditional measures to get the economy growing more briskly, having already cut interest rates to near zero and committed to more than $800 billion in fiscal stimulus.

With conventional tools off the table, it might take a "Hail Mary" pass from policy makers to recharge the economy if an anemic recovery slows even further.

Most ideas have drawbacks. Infrastructure spending, for instance, has appeal in the Obama administration, because many of the nation's roads, bridges and tunnels need updating and because so many construction workers are dormant. But new spending would spark an outcry in the face of trillion-dollar budget deficits and no plan in place to reduce them. Republicans prefer tax cuts—permanent ones—but they also face deficit constraints.

Laura Tyson, a professor at University of California, Berkeley's Haas School of Business who served as President Bill Clinton's chief economic adviser, favors a big, long-term investment program funded through Build America bonds, federally subsidized taxable municipal bonds, and a national infrastructure bank, something President Barack Obama has proposed. The government would put in capital and the bank would raise its own debt to fund projects, sometimes partnering with private businesses. The catch: This also adds to government debt, only indirectly.

[lbryce]

What, Bernanke cannot cover up for the incompetencies of the federal government? Perhaps, thye should reconsider some proven remedies: FREEDOM!

Freedom from high taxes, debilitating regulations, massive uncertainties from a vindictive federal government. Freedom from ObamaCare and a joke of financial regulatory reform for those who were most responsible for the financial meltdown: Dodd, Frank, Clinton, Obama (as senator), Gorelick, et.al.

Why does the federal government assume and presume that it knows best when it consistently displays its utter incompetence? We want our freedom back! Freedom to succeed and freedom to fail. Life is not without and the utter arrogance of this administration to assume that life should risk-free is destroying our opportunities to grow.

Time to downsize the size, scope, and presume responsibilities of the federal government. But, wait, that would mean that the president, the Congress, and the courts would have to relinquish their abilities to ruin our lives. Or, is that their genuine agenda?

A "Hail Mary" pass is a strategy of desperation. Maybe the sky is about to fall.

[MNJohnnie]

Only in Government, and Academia, is standard knee jerk response to the complete failure of any political/economic strategy "Keep doing the same thing, just do a whole lot more of it!”.

John F Kennedy, Ronald Reagan and GW Bush showed you the solution idiots. Slash taxes and regulation and get OUT of the way. Only this time, also control the Fed spending, don't just promise to do it later.

[Anti-Bubba182]

Wanna fix the US economy? Impeach Obama, gut the public sector, rein in unions and hang some credit default swap/liar loan mortgage bundlers, cut taxes and get out of the way of honest business.

[thackney]

government has exhausted traditional measures to get the economy growing more briskly

Not hardly, even JFK understood tax cuts grew the economy.

[corbe]

Might be time to invest in Catepillar stock. Guilty of not reading the article.

[mo]

This really isn’t rocket science...unless you’re a liberal idealogue...or just an idiot.

Deregulate, Detax, Fairtax.

Watch the afterburners of the American Economy ignite!!!

but to get there..its becoming increasingly obvious Main St will have to burn down K St....

[seowulf]

Laura Tyson, a professor at University of California, Berkeley's Haas School of Business who served as President Bill Clinton's chief economic adviser, favors a big, long-term investment program funded through Build America bonds, federally subsidized taxable municipal bonds, and a national infrastructure bank

Now, there's the answer right there: a huge Union Slush Fund.

[HereInTheHeartland]

GET GOVERNMENT OFF PEOPLE'S BACKS; and the economy would boom.
Just imagine Obama giving a speech in which he admits his economic policies have been wrong. (of course he won't). He then goes on to lay out a new course. It would be fueled by entrepreneurisim; reduction of onerous business regulation and taxes; a preference for people spend their own money rather than the government; etc...