Legal Commentary

Laura Tyson: We Need A Second Stimulus

By Big Tent Democrat

This opinion is significant in that Laura Tyson is a member of President Obama’s Economic Recovery Advisory Board. Tyson writes:

OUR national debate about fiscal policy has become skewed, with far too much focus on the deficit and far too little on unemployment. There is too much worry about the size of government, and too little appreciation for how stimulus spending has helped stabilize the economy and how more of the right kind of government spending could boost job creation and economic growth. By focusing on the wrong things, we are in serious danger of failing to do the right things to help the economy recover from its worst labor market crisis since the Great Depression.

There is some silliness in Tyson's piece, like this -- "By easing capital market concerns about the government’s future borrowing needs, such a plan would permit larger deficits and slower debt reduction while unemployment is still high." There are no discernible "capital market concerns" about the public debt, as Tyson herself implicitly acknowledges when she states that borrowing costs for the federal government are near all time lows. But for the most part, her message is compelling and necessary. Now if only the President and the rest of his economic team would get on board.

Speaking for me only

Full post as published by TalkLeft on August 29, 2010 (boomark / email).