Barack Obama mentioned that he would welcome suggestions from Paul Krugman on the economic stimuls plan.
“Let’s not mince words,” Krugman said recently. “This looks an awful lot like the beginning of a second Great Depression.”
“Here’s my nightmare scenario: It takes Congress months to pass a stimulus plan, and the legislation that actually emerges is too cautious. As a result, the economy plunges for most of 2009, and when the plan finally starts to kick in, it’s only enough to slow the descent, not stop it. Meanwhile, deflation is setting in, while businesses and consumers start to base their spending plans on the expectation of a permanently depressed economy – well, you can see where this is going,” Krugman recently wrote.
That’s the “hard place.”
The rock is this: Congressional Democrats remove tax cuts proposed by Obama from the stimulus while Republicans try to hold down the deficit by limiting the total amount of Federal money spent in the stimulus.
And let’s just suppost that both sides aim the stimulus at short-term construction jobs rather than long-term careers that will make more wealth and more lasting taxpayers — and a lasting, vibrant U.S. economy.
That’s the rock.
‘This looks an awful lot like the beginning of a second Great Depression.’