As Then Economy Turns (Bad)

Dr. Reich is at it again, and rightly so. I recommend his blog today, 1/6/09.

http://robertreich.blogspot.com/

Here is what I told him (he of course listens closely to me):

My concern is this: you have stressed repeatedly that the question is not whether the government will do too much or too little, and that 'too little" will be a big mistake, a waste of time. The problem is, that while that all makes perfect sense, we do not have economists and people looking out for the good of the country making these decisions: we have politicians.

The stink and discussion for the last 24 hours has revolved around what has come (to some) as a surprise that the Obama stimulus package will include a 40% portion devoted to tax cuts rather than cash infusions. Lefties are horrified and righties are gloating. Republicans have already vowed to assail, contort, delay and hamper all efforts to get a package signed unless they have their way and the Obama folks seem to be working toward a compromise which will be only a luke-warm solution which fails to do enough. I.e., it will do "too little" but the politicians will be happy because their side "won".

You are preaching to the choir, Dr., but the choir is still paying the salaries of the politicians,and they have the purse strings and the check book. Unless this paradigm is altered, you and Krugman, et.al, are pissing into the wind.