Wednesday, March 18, 2009

Economists say its working, but may not be big enough... I second that....

Pelosi open to another stimulus if necessary  

Allen Sinai, chief global economist for Decision Economics, said the stimulus would probably create 2.5 million jobs in the first two years. "Initially, the jobs created may be a little disappointing, but over time, over a three-year period, I think 3 million new jobs is not unrealistic at all."
Despite that forecast, the stimulus is a good policy, Sinai and two other economists agreed.
It just may not be big enough.
"I think policymakers need to do more. I don't think we're done," said Mark Zandi, the chief economist for Moody's Economy.com who has advised both Republicans and Democrats. "You have to be extraordinarily bold. The big mistake here would to not be aggressive in responding to this crisis."
"Whether this is enough, I think, is still unknown, but it is the right set of actions to take," said Rebecca Blank, a fellow at the Brookings Institution. "What is absolutely true right now is doing nothing is not an option; that the risks are all on the side of under-reacting, and not on the side of over-reacting."
We need another stimulus,because of the size of our economy compared to the size of the stimulus (from my understanding of the argument).  It was the massive (that word might be an understatement) world war II spending that got us out of the Great Depression doldrums, this stimulus package that passed wasn't even close to those percentages...
One of the drivers at UPS this morning was worried about the coming cuts.... are they on the way?  I don't think so--at least for my position, they'll get rid of middle management first I'd assume. 

Posted via web from jimnichols's posterous

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