'Stimulus' Snake Oil

NY Post ^ | September 7, 2010 | ALAN REYNOLDS

[Scanian]

A year after the US economy stopped falling, we are still mired in "the worst labor-market crisis since the Great Depression," writes Laura Tyson in The New York Times. Voicing the consensus of the left-liberal economic establishment -- she's reportedly a leading candidate to head up President Obama's Council of Economic Advisers -- Tyson argues that the US unemployment rate, still stuck at 9.6 percent, is reason to try "a second fiscal stimulus" to raise "aggregate demand." She's wrong in a number of illuminating ways.

First, the highest unemployment rates are highly A year after the US economy stopped falling, we are still mired in "the worst labor-market crisis since the Great Depression," writes Laura Tyson in The New York Times. Voicing the consensus of the left-liberal economic establishment -- she's reportedly a leading candidate to head up President Obama's Council of Economic Advisers -- Tyson argues that the US unemployment rate, still stuck at 9.6 percent, is reason to try "a second fiscal stimulus" to raise "aggregate demand." She's wrong in a number of illuminating ways.

First, the highest unemployment rates are highly concentrated in relatively few states -- largely the ones with the highest home-foreclosure rates. That suggests that the root problems are localized, lingering debt woes -- so a nationwide quick fix designed to entice people to borrow more and save less is doubly off-base.

Read more: http://www.nypost.com/p/news/opinion/opedcolumnists/stimulus_snake_oil_RySPWcspAZ79U9cskrpHUK#ixzz0ypm9ydQuconcentrated in relatively few states -- largely the ones with the highest home-foreclosure rates. That suggests that the root problems are localized, lingering debt woes -- so a nationwide quick fix designed to entice people to borrow more and save less is doubly off-base.

Read more: http://www.nypost.com/p/news/opinion/opedcolumnists/stimulus_snake_oil_RySPWcspAZ79U9cskrpHUK#ixzz0ypm9ydQu

[FrankR]

[broken_arrow1]

STOP SPENDING!

[JimmyMc]

Stimulus? I pay my bills. What is in this for me? A tube of K Jell?

[BobP]

Obama is doing just what he planned with the economy. His goals are in sight. Everyone will either be employed by the government; dependent on the government or a lamp shade.

I've just about had enough of it.

Liar = Obama.

Cheater = Feds.

Thief = Congress.

Con artist = Piss-Stream Media.

Throw 'em all out.

[mikey_hates_everything]

Unemployment is a lot more than 9.6% now and without the first “stimulus”, unemployment was only supposed to get to about 9%. Yeah, let’s have a second fiscal stimulus when they won’t even admit the real unemployment numbers due to the first one.

[Cowboy Bob]

...still stuck at 9.6 percent

Stuck at 9.6? It actually increased from 9.5...officially.

[raybbr]

Another Progressive...

---

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Experts › Laura Tyson

Laura Tyson

Senior Fellow

Laura D’Andrea Tyson is the S.K. and Angela Chan Professor of Global Management at the Haas School of Business at the University of California Berkeley. She served as dean of London Business School from 2002 to 2006, and as dean of the Haas School of Business, University of California at Berkeley from 1998 to 2001.

Dr. Tyson is a member of the President Barack Obama’s Economic Recovery Advisory Board. She served in the Clinton administration and was the chair of the Council of Economic Advisers between 1993 and 1995, and the president’s national economic adviser between 1995 and 1996.

Since 2007, Dr. Tyson has served as a senior advisor to the McKinsey Global Institute and the Center for American Progress. She is a member of the MIT Corporation Board.  She serves on the advisory boards of Newman’s Own Foundation, The Rock Creek Group, Generation Investment Management, Credit Suisse Research Institute, H&Q Asia Pacific, and the Brookings Institution Hamilton Project. She serves on the boards of directors of Eastman Kodak Company, Morgan Stanley, AT&T, CB Richard Ellis, Silver Spring Networks, Peter G. Peterson Institute of International Economics, and the New America Foundation.

Dr. Tyson has written for many publications including The New York Times, the Financial Times, The Wall Street Journal, and The Washington Post and was a monthly columnist for BusinessWeek between 1998 and 2005. She has made numerous television appearances on economic issues. She is the author of numerous reports, academic papers and books on competitiveness, industrial policy and international trade, including the influential book Who’s Bashing Whom? Trade Conflict in High Technology Industries. 

Dr. Tyson has a summa cum laude undergraduate degree from Smith College and a Ph.D. in economics from the Massachusetts Institute of Technology.

Email: ltyson /@\ americanprogress.org

[Vaduz]

But Obama&Co. give you a little extra with your K jell rock salt.