Nobel Prize Winning Economist Joseph Stiglitz's 4-Point Plan For Fixing The Economy

  • metta

    Posts: 39104

    Aug 11, 2011 6:03 PM GMT
    Joseph Stiglitz's 4-Point Plan For Fixing The Economy

    http://www.businessinsider.com/joseph-stiglitz-americas-debt-crisis-2011-8

  • metta

    Posts: 39104

    Aug 11, 2011 9:28 PM GMT
    So what would it take to get our government to implement some of this?
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    Aug 11, 2011 9:32 PM GMT
    metta8 saidSo what would it take to get our government to implement some of this?


    Except for no. 2, when hell freezes over.

    Or when the Republicans lose big time in 2012 and Obama finally grows a belated backbone, i.e. when hell freezes over.
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    Aug 11, 2011 10:00 PM GMT
    So what would it take to get our government to implement some of this?

    A genuine interest by all Americans, but especially law makers, to put their self-serving personal interests on the back burner

    Bush tax cuts are on their way to expiration (if allowed to do so). I would go further to include a flat tax/fair tax instead of the current system. Give more incentives to corporations to help them save and create more jobs.

    We can have a strong military without being the policeman to the world and defending other countries for free.

    Putting Americans back to work will be the hardest. The corporations could bring more jobs back to the US if they had better tax breaks. The downside is we will be paying more for goods. Goodbye Wal-Mart.

    Reform not only Medicare Part D, but all of Medicare. Waste can definitely be trimmed.

    The problem with goverment is that those who make the laws and spend the money don't look upon government funds as real money.
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    Aug 12, 2011 12:16 AM GMT
    vincent7 said
    Putting Americans back to work will be the hardest. The corporations could bring more jobs back to the US if they had better tax breaks. The downside is we will be paying more for goods. Goodbye Wal-Mart.


    How much more cash and tax breaks do corporations need to start hiring? Answer: Wrong question. Ask how we can get out of a liquidity trap.

    http://online.wsj.com/article/SB10001424053111904006104576500690012110476.html?mod=googlenews_wsjNon-financial companies in the Standard & Poor's 500-stock index were holding $1.12 trillion in cash and short-term investments in their most recent reports, up 59% from $703 billion in the third quarter of 2008. Those stockpiles are providing companies with a cushion of comfort amid the economic and market turmoil.


    http://cebviews.com/2011/08/08/us-economy-escaping-the-liquidity-trap/In the liquidity trap, both corporations and households need cash and liquid assets, such as treasuries, to shore up their balance sheets. Corporations accumulate cash by cutting costs and fixed capital investment. Households reduce private consumption. But private consumption and investment are major components of aggregate spending. When they fall and remain low, the result is a depressed macroeconomic environment. Economic growth is sluggish and volatile, because it hinges on the remaining components of aggregate spending – government expenditures, changes in inventories and net exports. With high unemployment and low capacity utilization there is no upward pressure on wages, and inflation remains low, creating a potential for dangerous deflation. Finally, a preference for liquidity generates demand for dollars and US government debt, keeping bond prices high, interest rates low, and exchange rates sound.
  • metta

    Posts: 39104

    Aug 12, 2011 1:22 AM GMT


    ^
    Yes, I also think that the solutions will have to be more complicated than just giving more tax cuts to corporations. More profits does not mean more jobs..

    A Jobless Future -- Where Technology Leads to Efficiency Over Growth
    http://www.huffingtonpost.com/jeff-jarvis/a-jobless-future----where_b_920066.html
  • Webster666

    Posts: 9217

    Aug 12, 2011 1:55 AM GMT
    I've been pushing 3 out of the 5 , all long.
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    Aug 14, 2011 1:24 AM GMT
    http://www.nytimes.com/2011/08/12/opinion/the-hijacked-crisis.html?_r=1&partner=rssnyt&emc=rssFor the fact is that right now the economy desperately needs a short-run fix. When you’re bleeding profusely from an open wound, you want a doctor who binds that wound up, not a doctor who lectures you on the importance of maintaining a healthy lifestyle as you get older. When millions of willing and able workers are unemployed, and economic potential is going to waste to the tune of almost $1 trillion a year, you want policy makers who work on a fast recovery, not people who lecture you on the need for long-run fiscal sustainability.

    Unfortunately, giving lectures on long-run fiscal sustainability is a fashionable Washington pastime; it’s what people who want to sound serious do to demonstrate their seriousness. So when the crisis struck and led to big budget deficits — because that’s what happens when the economy shrinks and revenue plunges — many members of our policy elite were all too eager to seize on those deficits as an excuse to change the subject from jobs to their favorite hobbyhorse. And the economy continued to bleed.

    What would a real response to our problems involve? First of all, it would involve more, not less, government spending for the time being — with mass unemployment and incredibly low borrowing costs, we should be rebuilding our schools, our roads, our water systems and more. It would involve aggressive moves to reduce household debt via mortgage forgiveness and refinancing. And it would involve an all-out effort by the Federal Reserve to get the economy moving, with the deliberate goal of generating higher inflation to help alleviate debt problems.

    The usual suspects will, of course, denounce such ideas as irresponsible. But you know what’s really irresponsible? Hijacking the debate over a crisis to push for the same things you were advocating before the crisis, and letting the economy continue to bleed.
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    Aug 14, 2011 2:08 AM GMT
    southbeach1500 said
    metta8 saidSo what would it take to get our government to implement some of this?


    Returning the Democrats to power in the House.

    And if we do, the collapse of the country will be complete.


    What he's proposing is "more taxes" and "more government spending" which we've been doing since Mr. Obama took office almost 3 years ago and it doesn't work.

    I guess if you're clueless, you get a Nobel Prize these days...





    Total revisionist bullshit.

    First of all, it's PRESIDENT Obama - not "Mr." Obama.

    And NO President Obama has NOT added "more taxes".

    FYI - the economic stimulus bill included 275 BILLION in tax CUTS.

    President Obama also extended the Bush tax CUTS for two years, in order to get the Repubs in Congress to agree to extending unemployment benefits.

    And tax rates are at the LOWEST level since 1950!
    http://www.usatoday.com/money/perfi/taxes/2010-05-10-taxes_N.htm

    You Repubs think you can just make shit up and people will believe it.

    The problem isn't that taxes are too high.
    The problem is that taxes are too LOW - on the wealthy.

    The Bush tax cuts have been in place for almost a decade and they've created neither an economic boom nor a hiring boom.

    And the Bush tax cuts did NOTHING to prevent the worst recession in 70 years.