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View Diary: Why deficits don't matter - the reality of government finance (116 comments)

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  •  The US gov could stimulate by getting money into (1+ / 0-)
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    the hands of folks directly.

    The buy back of bonds is a free give away to banks, and to the extent that banks might need liquidity, this could be  achieved through bottom up methods.

    •  My father preached this fifty years ago. (2+ / 0-)
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      katiec, psyched

      He was a child of the Great Depression and he remembered well the effects of the public works projects. In fact, the whole generation of adults that I knew as a child believed in this approach.

      Might and Right are always fighting, in our youth it seems exciting. Right is always nearly winning, Might can hardly keep from grinning. -- Clarence Day

      by hestal on Sat Nov 10, 2012 at 08:25:55 AM PST

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    •  We used to spend 5-6% of GDP (0+ / 0-)

      on infrastructure, last year we spent 1.3% about 195 billion, which is about 4 to 5 million jobs. in a 15 trillion dollar economy 5% is 750 billion. We could create an additional 10 to 13 million jobs.

      Without that New Deal policy every recession sees a jobless recovery, 1990, 2000, and the current great recession. From 1938 to 1988, recessions were shorter and shallower, only in 3 years did GDP go worse than negative 2%.

      FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

      by Roger Fox on Sat Nov 10, 2012 at 02:25:05 PM PST

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