Comments

Disagree. We've heard this before and it was just a few months ago! Core issues are covered up by hopes of a quick fix. Experimentation by the government did not work in the 1930's and it won't work this time around either.

Posted by John Daley at January 9, 2009 2:50 PM

I'm pro bazooka, not experimentation. What can I say, that's my skimpy economics training yelling at my subconscious.

Posted by tom peters at January 9, 2009 3:12 PM

President-elect Obama is asking for suggestions, John. Do you have any? I heard my governor, Jennifer Granholm, talk about the stimulus package on Hardball last night and I was heartened with the possibilities of green jobs and infrastructure building.

As was seen in the life-threatening water-main break in Maryland a few weeks back, it looks like infrastructure work is needed; this will create jobs and be beneficial for small businesses too.

Posted by Judith Ellis at January 9, 2009 5:37 PM

Accountability is the issue for the current "Greatest Generation of Corruption". Cramer me & others can easily stay wealthy (offshore) but real wages are decreasing for the main stream because of inept stimulus, bailouts, et al. Am a fan of Barack but he is making too many mistakes with Feinstein, vetting Richardson, Rahm-Blago-Resko, past Chicago life choices, etc.

Posted by Contraire at January 9, 2009 7:55 PM

Hate to repeat myself, but "greatest generation of corruption" is hilarious. "Greatest generation of greed" would also be nutty, but would seem a little less so and sting a little more than the corruption bit.

Posted by tom peters at January 10, 2009 8:40 AM

"Greatest Generation of Debt & Incompetence". Financial, moral & otherwise.

Posted by Contraire at January 10, 2009 6:02 PM

Personally I think the recession is over-hyped. We drove to Florida over Christmas - bumper to bumper from North Carolina all the way into Florida. Hotels and themes parks seemed full. Insane crowd levels at the outlet malls. Average wait of one hour in restaurants. If this is a recession, I'd hate to see what prosperity looks like.

Posted by Kurt at January 10, 2009 11:05 PM

Yup....sounds fabulous...let's fix another situation just like the one we tried to fix in 2000-2002 when the Fed dropped interest rates sharply to stave off a recession....and guess what....drum roll please....the housing boom and bust was the result of that marvelous action. Now the government is on a crash course to hyperinflation by its current actions of bail out and stimulus. Is this bail out money coming from taxpayers. Oh if it only were....fact is the government is depositing money into its bank account electronically and giving money to the guilty who caused the problem in the first place. When will hyperinflation hit....first there will be a battle royale with the forces of deflation....but in the next 5-10 years, get prepared for $40 hamburgers.

You heard it here first :)

Posted by Steve at January 11, 2009 12:00 AM

A few weeks back I wrote two posts on my blog about being for infrastructure. I initially thought the stimulus package was a great idea then I grew really concerned about states and cities spending recklessly. I remain for the stimulus package but responsiblity and accountability will be desperately needed.

In a post, Being for Infrastructure II, I wrote:

States and cities are seen as government entities that are on the front line. Governors and mayors are those who feel the pain of their states intimately. When President-elect Obama announced the stimulus which would concentrate on infrastructure I was for it. I paid particular attention to its necessity after the water main break last week in Maryland. I remain for such re-building and building, but I am also leery about states and cities receiving stimulus money and in return not doing much to help their citizens.

Coleman Young, the sometimes infamous former mayor of Detroit, was legendarily known for receiving millions of dollars from the federal government during the presidency of Jimmy Carter. (Love and Kudos should be given to Mayor Young for his years of service as a Tuskegee Airman, his appearance before the House of Un-American Activities Committee, and his initial good as mayor. Perhaps he stayed a bit too long.) According to Forbes, states are now requesting billions of the stimulus package:

1. Miami, FL: $3.4 billion
2. Sacramento, CA: $2.8 billion
3. Philadelphia, PA: $2.6 billion
4. Los Angeles, CA : $2.4 billion
5. Albuquerque, NM: $2.3 billion

It is still uncertain where much of this money has gone and it is arguable that the people did not greatly benefit. The People Mover that circles downtown would be laughable if it were not so sad. Some have said that it was the start of a massive rail system that would traverse the various suburbs. It remains like the trolley in the land of Make-Believe on Mr. Rogers Neighborhood, save the People Mover does not circle any neighborhoods.

The millions were meant to rebuild the city; the People Mover which moves very few people and is often not even operable has done little to rebuild the city. (Perhaps it served a good purpose during the Super Bowl.) Many years later much of the city remains in shambles. Considering this, who will hold states and cities accountable for federal funds received to build infrastructure? Many states and cities are seeking stimulus money. But we must not give funds to any entity without oversight and accountability. Otherwise, there are too many avenues for corruption.

Posted by Judith Ellis at January 11, 2009 7:59 AM

Appreciate the accountability echo - yes! Apparently the TARP $700B is non accountable - Paulson, et al will NOT release even vague line item accounting for spending of those tax payer mega Billions going on Trillions.

Only FOX News has sent in a FOIA/PA request to demand the peoples' right to know what the hell their "government" is doing. 18% approval rating for Congress - what a surprise!

Posted by Contraire at January 11, 2009 4:41 PM

"Apparently the TARP $700B is non accountable - Paulson, et al will NOT release even vague line item accounting for spending of those tax payer mega Billions going on Trillions."

Could not agree more wholeheartedly.

Posted by tom peters at January 11, 2009 4:54 PM

I second TP's!

Posted by Judith Ellis at January 11, 2009 6:32 PM

More government is not the answer to every problem. These trillions of dollars in bailouts will now be mortgaged on the backs of American taxpayers who will bear the burden of these actions for generations. I have yet to see a study that says government stimulus actually works. Japan spent trillions throughout the 90s which had little or no effect on their economy.
The nanny state will not be able to shield us from responsibility, personal or societal.

Posted by Bruce Bortree at January 12, 2009 2:30 PM

Judith--was that before or after Mayor Young tried to sell Fort Detroit, which was actually owned by the United States Government, not the City of Detroit? Whatta joker, that Coleman! Those were the days, eh, when we could RESPECT our corrupt leaders in Michigan instead of just pitying them (as in the Hip Hop Mayor Kwame). And I can't believe you were heartened by anything uttered by the miserably failed Governor Jennifer. I get the shakes every time I remember she is part of the Obama transition advisory team. What can she advise upon? How NOT to run a state?

Posted by Useless Sam Grant at January 14, 2009 4:13 PM

Tom, please broaden your economic horizons. May I suggest you spend some quality time at mises.org? A firmer foundation in economic principles might help you better interpret what you're reading in the WSJ.

Posted by Andrew at January 14, 2009 4:55 PM