So…nothing is working thus far in repairing the damage that our overconsumption has caused. What is Congress and the Administration to do? I know, how about Stimulus Package II, since the first one worked so well (not). From the article:
“We have to prop up consumption,” Representative Barney Frank, a Newton Democrat and chairman of the House Financial Services Committee, said in an interview in which he revealed some of the details the party leadership was discussing.
Earth to Barney. Earth to Barney. Over-consumption and over-spending are what got us here in the first place. Nice to see you learned something from the meltdown.
The rationale for another stimulus package, particularly one that helps the states and cities, is compelling for many economists. The nearly $1 trillion that Congress and the Federal Reserve are making available to the financial system is intended to make credit more available. That props up the supply side.
Is this writer serious? Does he understand history and/or economics. If you have to “prop up” something, you are propping it up only so that down the road it will collapse further. What you must do is return to balance, i.e. teach Americans to spend no more than they earn.
I expect that when this gets passed, Bush will go along as he always has because he is totally a fiscal conservative…except when he isn’t.