"A Slow but Steady Climb to Prosperity" by Alan Blinder

Jump to Last Post 1-3 of 3 discussions (7 posts)
  1. Ralph Deeds profile image67
    Ralph Deedsposted 5 years ago

    "...Two indisputable economic facts are highly relevant to the current campaign. First, more than four years after the frightening financial panic and deep recession triggered by the collapse of Lehman Brothers in September 2008, the U.S. economy is still not healthy. Second, however, the economy is improving. Notice that the second fact doesn't contradict the first. When you suffer through the worst recession since the 1930s, healing takes a long time....

    "Mr. Romney repeatedly says the economy is growing more slowly this year than last year, and grew more slowly last year than the year before. If he's referring to real GDP, as I suppose he is, he's right. GDP growth averaged 2.4% over the four quarters of 2010, 2% over the four quarters of 2011, and only 1.7% so far this year. That's not good...

    "On the unemployment front, progress since 2010 has been slow but palpable. The national unemployment rate peaked at 10% in October 2009, dropped to 9.4% at the end of 2010, fell to 8.5% by the end of 2011, and to 7.8% in September 2012. No one knows what Friday's report on October will bring, but we have finally struggled back to the unemployment rate of January 2009....

    "Meanwhile, government purchases of goods and services declined for eight consecutive quarters before a surprising uptick in federal spending (largely for defense) in the third quarter of this year. Falling government demand is the opposite of what we need in a weak economy...

    "But lawmakers can and should be doing more. As I've said on this page before, fiscal policy should be giving us a combination of sizable stimulus right now and thoroughgoing deficit reduction starting in a year or two. (That's an opinion.) Instead, it's doing neither. (That's a fact.)

    "For stimulus, we could do a lot worse than to enact President Obama's American Jobs Act, which he proposed about a year ago. It consisted of about $250 billion in tax cuts and about $200 billion in spending, most of it well targeted on creating jobs. But Republicans rejected the act outright....

    "For his part, Mitt Romney rejects any short-term fiscal stimulus, attacks the Fed for trying to speed up the recovery, and proposes large, new, permanent tax-rate reductions—beyond even the Bush tax cuts—which would almost certainly bust the budget again. He claims the rate cuts can be paid for by closing loopholes. But several neutral third parties have demonstrated that his numbers don't add up.

    So the Romney plan would provide neither the short-run stimulus nor the long-run deficit reduction we need, while the Obama plan would provide both. Which plan is better? I guess the answer to that is an opinion, not a fact.

    Mr. Blinder, a professor of economics and public affairs at Princeton University, is a former vice chairman of the Federal Reserve. 

    http://professional.wsj.com/article/SB1 … g=reno-wsj

    1. tammybarnette profile image60
      tammybarnetteposted 5 years agoin reply to this

      Thank you so much for sharing this article. This goes along with all of my personal research from the BLS, the CBO, the US Treasury; So it is nice to see someone with some noteriety come out with this statement. Common sense dictates that if a person, let along a country, spends 8 years , lets say running up credit cards until they are all maxed out, then it's time to pay the piper...and it takes at least twice as long to fix the problem than it took to create it. So, I dug through facts, posted forums that nobody visits, just to show facts. You can not just give tax cuts and expect things to magically turn around. Without stimulus the country falls back into reccession, without monitoring and being fiscaly responsible about policy the debt will continue to climb, without equal measures of application we will design a brand new bubble...I trust Obama's plans, I think Romney is a talking head for the GOP who just want a man they can control ie: flip flop, etcha scetch, will fill that bill perfectly.

      1. Ralph Deeds profile image67
        Ralph Deedsposted 5 years agoin reply to this

        Actually, the work on repairing the hurricane damage is likely to provide a shot in the arm for the economy. The stock market apparently thinks so. It's up 100+ points today.

        1. tammybarnette profile image60
          tammybarnetteposted 5 years agoin reply to this

          Good point Ralph, the new construction alone will create many jobs, new construction being one of the hardest hit in the recession and the slowest to bounce back.

  2. Gnarles Snarkly profile image59
    Gnarles Snarklyposted 5 years ago

    Former bank robber.

  3. e-five profile image94
    e-fiveposted 5 years ago

    Gosh, I miss the boom-and-bust cycles of the 1890s, 1920s, and 2000s, don't you?  It was like a financial amusement park with an awesome roller coaster.

    1. Mighty Mom profile image82
      Mighty Momposted 5 years agoin reply to this

      Superstorm Sandy claimed the rollercoaster, I'm afraid.
      And the rest of the boardwalk, too.


This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

Show Details
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)