I have become more in support of the stimulus lately. The following reasoning makes me support it: 1) do nothing and nothing will change, we shall stay in this disaster. 2) tax cuts will do nothing but give people a little more money not to spend, and no spending leaves the economy as it is. 3) Funding things like education, health care, green jobs, and infrastructure creates jobs, employs people, and therefore puts consumer dollars back into the market.
Noted economist Paul Krugman wrote an op-ed for the N.Y. Times this morning stating the case for Stimulus (he thinks we need one at least twice as big as Obama proposes!):
The President will be speaking to us on prime-time television on Monday to pitch the package.
Meanwhile the battle rages in the senate. The republicans oppose any stimulus at pretty much all costs, so we will see what a final bill looks like.
But we must recognize that the economy is a disaster and simply cutting taxes will do nothing. Obama, knowing this, has picked an economic advisory board supposedly to get advice from people who are not Washington insiders. I don't know enough about this board to evaluate them yet. But here is the video of Obama announcing the team:
The members of the board are listed as follows at http://www.whitehouse.gov/blog_post/beyond_the_echo_chamber/
"The President's Economic Recovery Advisory Board
Staff Director and Chief Economist
William H. Donaldson, Chairman, SEC (2003-2005)
Roger W. Ferguson, Jr., President & CEO, TIAA-CREF
Robert Wolf, Chairman & CEO, UBS Group Americas
David F. Swensen, CIO, Yale University
Mark T. Gallogly, Founder & Managing Partner, Centerbridge Partners L.P.
Penny Pritzker, Chairman & Founder, Pritzker Realty Group
Jeffrey R. Immelt, CEO, GE
John Doerr, Partner, Kleiner, Perkins, Caufield & Byers
Jim Owens, Chairman and CEO, Caterpillar Inc.
Monica C. Lozano, Publisher & Chief Executive Officer, La Opinion
Charles E. Phillips, Jr., President, Oracle Corporation
Anna Burger, Chair, Change to Win
Richard L. Trumka, Secretary-Treasurer, AFL-CIO
Laura D'Andrea Tyson, Dean, Haas School of Business at the University of California at Berkeley
Martin Feldstein, George F. Baker Professor of Economics, Harvard University"