Why wasn’t this story listed in Whipple Chips this am, Lowell?
Prince Mark’s office has yet to issue any correction.
Let us review. The U.S. economy is in a liquidity trap. Banks are hoarding cash. Corporations are hoarding cash. Consumers are not spending but are being forced to pay down debt. Unemployment is between 9 and 15% depending on the metric used. Aggregate demand fell by $1.7 trillion and hasn’t recovered much.
Without the meager $700 billion stimulus, there would have been millions more out of work and the slight GDP growth seen since the bottom would instead have been an extended contraction/depression.
All of the leading economists said in ’09 that the stimulus was too small and had too many dollars going to tax cuts and not enough toward infrastructure.
Without a significant new round of stimulative spending, enough to plug the hole in aggregate demand, we’re looking at a decade of no or minimal growth and high unemployment just as the baby boom echo begins their employment careers with life time impacts for them and our society.
We are repeating all of the mistakes that Japan made in the ’90s with all of the same results or worse a deflationary spiral into an extended depression.
But not according to that Nextel speculator, Prince Mark. Government spending has to stop. He’s got his and the rest of us can go hang.
Did this guy take economics in college?
Did he pass?
Does he care?
How does he respond to Bob Herbert’s column today?