the things people say
November 2, 2009 17 Comments
Nothing’s ever certain except race and taxes.
I also wonder if Yglesias is all that correct with this assessment:
I would say that another message is that progressive politics is badly disadvantaged by a situation in which the overwhelming majorities of political leaders and prominent media figures are white men. There are plenty of white men with progressive views, but in general the majority of white men are not progressive and the majority of progressives are not white men.
I think a lot of minority voters aren’t so much “progressive” as they are in favor of more direct government assistance, something Democrats have promised to do better than Republicans. A lot of minorities and union members also happen to be staunch social conservatives. Support for things like gay marriage is very low among black and Hispanic populations. Union members and minorities just have populist tendencies when it comes to economics. [Read more →]
November 2, 2009 75 Comments
The Five Horsemen of the Federal Budget
“Let’s put this simply. 80% of the budget falls into five categories: Social Security, Medicare/Medicaid, Defense, Veteran’s Benefits, and Interest on the Debt. EIGHTY PERCENT. So if you don’t tell me what you’re going to be able to feasibly cut in those categories, you are not approaching the problem seriously.
This is especially the case when it comes to defense spending. Let’s face it: you can’t argue for more military spending AND a lower federal budget. If the Glenn Becks and Rush Limbaughs of the world want me to take them seriously on controlling federal spending, they shouldn’t have howled when Bob Gates didn’t increase defense spending this year as much as the rest of the Pentagon wanted him to.” ~Alex Knapp, responding to Ross Douthat and the Tea Parties
Outside the Beltway is a great blog – always a good read: clear, concise, and not shouty. In other words, like Douthat, exactly my type of conservative blog despite any ideological differences James or Alex and I may have. And on this matter, I can’t help but agree. It’s all well and good to want lower spending, but what exactly are we going to cut? I would argue for defense cuts first and foremost, but I’m not a totally unrealistic person. As Buddy Holly once said: That’ll be the day…
April 16, 2009 6 Comments
Balance Sheet Recession
After commercial property value fell 87% in the nineties, Japan entered into a period of slow growth, but not quite recession.
Like Japan in the 1990s, the U.S. is suffering what Koo calls a “balance sheet recession.” When asset prices collapse, the people who bought those assets with borrowed money are left with balance sheets underwater, and all they want to do is pay down debt.
“People are no longer maximizing profits the way it’s assumed in economics. They’re minimizing debt. The invisible hand of [economist and philosopher] Adam Smith works in the opposite direction,” he says.
With private borrowing and spending frozen, the Japanese government stepped in, spending on highways, bridges and other infrastructure, and running up big deficits. Where the Japanese government erred, Koo says, was in worrying about those deficits. It cut back prematurely on the stimulus. The economy faltered, and the government had to resume spending.
Still, by 2005, companies had repaired their balance sheets and the Japanese economy was marching forward — until the latest crisis.
This does seem very similar to today’s recession, though we are obviously in the midst of a more globally widespread problem. I’m curious as to what others think on this matter. Can liquidity be restored through government spending? Is it important to keep that spending restricted to short term projects? Long term? Is there a good middle-ground? (What does short term or long term really mean, in any case? Who determines the terms?)
February 24, 2009 7 Comments
