Swedish Meatballs
14 hours ago
ZC: We've talked a lot about banks so far, but there is more to the economy than banking. It's been a really bad year for American households. Do we need a second stimulus? If so, what should it look like?Read More......
JS: We clearly need a second stimulus. There are a couple of ways of seeing this. When the Obama administration first moved on the stimulus, it posed a scenario that was not really rosy, but one that proved a little too optimistic. It expected unemployment without the stimulus it would be around 10 percent, with the stimulus it would be brought down to 8 percent. Others like me thought things were going to be much worse, that without the stimulus, unemployment would be around 12 percent and with the stimulus, it would be about 10 percent. And the pessimists were right. Well, when the world turns out to be worse than you thought it would, you have to adjust what you do.
But even a much bigger stimulus would have only brought the unemployment rate down to about 8 percent, which is still totally unacceptable. So right now I am very much in favor of a second round of stimulus. Hopefully, it will be better designed and more targeted to job creation and actually stimulating the economy. The tax cuts in the first round weren't designed really to stimulate the economy very much and didn't work very effectively.
ZC: And what do you do to create jobs? Are we talking fiscal aid to states? Unemployment benefits? A new WPA?
JS: The first thing I would do is aid to the states. The states have balanced budget frameworks. The revenues are down by around $200 billion because of the recession. If they don't get aid, they have to either raise taxes—which is very hard in the current environment—or cut back expenditures. And what they inevitably cut are teachers, nurses, firefighters and a whole set of crucial public services which are all the more important in an economic recession.
So the first thing is to provide states with money, and that spending goes right to the economy very quickly. You don't have to set up new programs and it really does save jobs. I would also do one of the things that Obama is pushing now which are job credits to encourage companies to hire more workers. Focus a little bit more direct attention on jobs. We don't know how effective these are going to be. There is some debate, but it seems to me that if we don't try we're not going to get anywhere.
FRANK: In this country, we had slavery for God knows how long. And now we look back on it and we say "How brave were they? What was the matter with them? You know, I can't believe, you know, four million slaves. This is incredible." And we're right, we're right. We should look back on that with criticism. It is a crushing mark on America's soul. And yet today, half of all black children are aborted. Half of all black children are aborted. Far more of the African American community is being devastated by the policies of today than were being devastated by policies of slavery. And I think, What does it take to get us to wake up?Read More......
Okay, there have been a few scattered developments that, when taken together, make it clearer and clearer that a reconciliation vote on the health bill is becoming a foregone conclusion.Read More......
First: A top Nancy Pelosi ally, Dem Rep George Miller, went on MSNBC this morning and said unequivocally that there will be such a vote:“The choreography gets a little complicated here, but the House will present a reconciliation bill.”Emphasis mine. Second: Another key House Dem on health care, Rep Rob Andrews, said on a conference call with reporters this morning that Dems had little doubt that they’d muster the votes for it in the end (an opinion not widely shared among pundits and reporters):“This Speaker has never brought a piece of legislation to the floor and failed to pass it. And she is not about to start now.”
Via Politico, after the Democrats’ milquetoast performance on health care leadership over the last year and counting, who doesn’t appreciate Sen. Bunning’s bluntness?Read More......In a colloquy with Senate Majority Whip Dick Durbin (D-Ill.), Sen. Jeff Merkley, a freshman Democrat from Oregon, was pleading for Bunning to drop his objection, when the Kentucky Republican got fed up.Everyone understands the importance of unemployment benefits extensions, but can you imagine any Democrat standing up to say: Tough sh–, I want the public option, because it’s the only thing that keeps down health care costs for Americans, and I won’t stop until we vote on it.
“Tough s—t,” Bunning said as he was seated in the back row, overheard by the floor staff and others in attendance.
I know it’s very impolitic and counter-intuitive for me to say this given the legislation Bunning’s blocking, but I have a begrudging respect for someone who won’t take any crap from weaker politicians on the Democratic side who won’t stand and fight for anything. That’s just how sick of this sh– I am.
The moral of this story: Republicans are mean; Democrats are patsies.
The governor has a reputation for being wildly mercurcial and changing his mind at the last minute - particularly if he feels he's backed into a corner.________
A range of political allies and even some close friends urged Mr. Paterson privately and publicly to end his bid for election. They said his political standing had been irreparably damaged by revelations on Thursday that the State Police had contacted the woman pressing a domestic violence complaint against a close aide, and by the allegation that the governor had spoken with her a day before she was due back in court.If it gets worse, Paterson will probably have to resign. Read More......
While no prominent Democrat called for Mr. Paterson to resign, several said it would be impossible for him to both govern and run a campaign while dealing with the allegations, which the governor has asked Attorney General Andrew M. Cuomo to investigate. Other officials said that if an inquiry showed that Mr. Paterson tried to influence the woman’s decision not to continue the case, he should resign.
Those calling on Mr. Paterson to suspend his campaign included senior Democratic members of New York’s Congressional delegation, Albany lawmakers and black Democratic officials, including some from Harlem, generally considered Mr. Paterson’s political home base.
“I don’t think his campaign can go forward successfully — quite the opposite,” said State Senator Bill Perkins, a Democrat from Harlem who holds Mr. Paterson’s former seat. “This is a fatal blow, and it will probably only get worse. I just think that it’s clear that this is a storm he has to step away from.”
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