Showing posts with label Economic Stimulus. Show all posts
Showing posts with label Economic Stimulus. Show all posts

Tuesday, March 10, 2009

Republicans: Saving the economy ruins the economy (seriously?)

There's been a meme that's been getting bigger and bigger, much to my profound annoyance; that of the right/Republicans claiming that not only did FDR's New Deal not help end the Great Depression, but rather helped prolong it. The Heritage Foundation, some kooky hyper-libertarian on Colbert a couple months ago, Ron Paul on Bill Maher's Real Time with Bill Maher. (Not that Ron Paul isn't a kooky hyper-libertarian.)

David Sirota wrote at Salon two months ago about this, as part of a larger analysis of Obama's stimulus package.

Sirota:
[Obama rejected] conservatives' increasingly loud claims that the New Deal "prolonged the Great Depression" - claims that are demonstrably false. As Census data shows, the pre-WWII New Deal spending and regulatory agenda resulted both in robust GDP growth rates and the single biggest decline in the unemployment rate in American history. Unbelievably, conservative think tanks have resorted to quite literally lying about government data, claiming, as the Heritage Foundation has, that the "New Deal never drove unemployment below 20 percent." As you can see from the Census Bureau's verifiable data from 1936 and 1937, that claim is a patent lie - and it's great that Obama and his economic team seems to understand that.


Sirota also points out how raising taxes does not hurt productivity or GDP growth, according to, you know, research rather than rhetoric, and according to a Republican's analysis, GDP growth is larger from infrastructure building than from tax cuts. Of course, I myself could give a shit about GDP growth, for nine reasons from Sunday, but once again the work/blog balance calls out, and work, I must go to her.

But before I go, I got on to all of this by reading this article on The Root about the racism that barred the New Deal from helping Blacks anything remotely near as much as it helped Whites, the need for African-Americans today to vocally and forcefully act and support the stimulus, and its spending in the "blackest" states, like Louisiana and Mississippi, whose governors have threatened not to spend stimulus money sent to the state to provide aid to the unemployed and other programs to help the economically disadvantaged, despite the fact that "in two of the blackest states, both with governors threatening to reject the aid, Mississippi and Louisiana, the rate [of unemployment] is three times that of whites". So yeah, go read Michael Dawson's article, too.

So here are your talking points/marching orders/background information sources to go out there and fight the conservative unreality-based-community, because seriously, yo, this shit about the New Deal prolonging the Great Depression -- pending some SERIOUSLY stronger and more mainstream analyses -- is getting on my last mother-lovin' nerve.

Tuesday, January 27, 2009

Walk like a New Dealer

(offensive version of this title: Walk like FDR)

Another, wait for it... Slate article, this time about Obama's Economic Stimulus Package. According to the figures from the Congressional Budget Office (as I've seen reported at least), only half of the hundreds of billions to be spent will be spent in the next two years; in the article Tim Noah (J-fave) points out that only one tenth of it will be spent during the current fiscal year (of which over half is still left). And supposedly, about one eighth will go to corporate goodies that do nothing for the economy (much less the Johanna the Average Person). (From Noah: "$212 billion [of the $816 billion plan] will be given out as tax cuts (of which close to half are corporate goodies of dubious value to economic recovery).)

Noah compares this to FDR's administration, and notes that he created in months the number of jobs Obama proposes to create in years, by directly contracting people in Public Works rather than through 3rd party (private) contracts -- that is, he didn't outsource, as Obama plans to. I'm sure there are good arguments for outsourcing* -- or at least politically rational ones -- but Noah's conclusion seems to be that effectiveness is not one of these arguments (with which I'd tend to agree). Noah observes that the program listed as an example of why the government must go slowly and carefully here is a program loaning money to auto companies for energy efficient vehicles, of which no money has been spent; Noah hypothesizes this is an example of why this is not the time to privately subcontract the work of creating jobs.

Considering the Republican/Conservative/Libertarian orthodoxy that FDR a) only incidentally helped end the recession, b) FDR didn't really affect the Depression, or c) FDR prolonged the Depression through his programs that didn't work such as Public Works representing counterproductive government intervention, I can't imagine, even in these more pro-government-intervention times that it would be terribly politically feasible for Obama to directly contract a bunch of Americans for Public Works projects as Employees of the United States Government. I don't even really blame him, politically. But it rather seems like "business as usual" in that, if one agrees with the Slate analysis or the proposition that FDR helped end the Depression, it presents "business as usual" and "non-change that we cannot believe in" to settle for an approach that will be inefficient and ineffective because an effective solution is a politically treacherous one.
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* Of no import whatsoever, I note here that from my understanding, "terceirização" is the Brazilian Portuguese term for outsourcing/subcontracting. (Lit. "thirdization")