Romer on Why the Government Should Do More

Romer on Why the Government Should Do More « The Washington ……

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[...] Romer on Why the Government Should Do MoreThe Washington IndependentI highly recommend that anyone with interest in economics read the full text of the speech (PDF) Christina Romer, outgoing head of the Council of Economic Advisers, gave yesterday. It is personal and hardly academic …Economist Christina Romer serves up dismal news at her farewell luncheonWashington PostEconomist: Economists Don't Know Why Unemployment Is So HighNPR (blog)Romer Calls for Washington to 'Spend More and Tax Less' in Farewell SpeechFOXNewsUSA Today -ABC News -The Atlantic (blog)all 194 news articles » Ten wpis zosta? opublikowany w kategorii Newsy z portali. Dodaj zak?adk? do bezpo?redniego odno?nika. ← East Coast Braces for Earl – Wall Street Journal [...]

[...] Romer on Why the Government Should Do MoreThe Washington IndependentI highly recommend that anyone with interest in economics read the full text of the speech (PDF) Christina Romer, outgoing head of the Council of Economic Advisers, gave yesterday. It is personal and hardly academic …Economist Christina Romer serves up dismal news at her farewell luncheonWashington PostEconomist: Economists Don't Know Why Unemployment Is So HighNPR (blog)Romer Calls for Washington to 'Spend More and Tax Less' in Farewell SpeechFOXNewsUSA Today -ABC News -The Atlantic (blog)all 194 news articles » [...]

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[...] Romer on Why the Government Should Do More « The Washington … [...]

[...] Romer on Why the Government Should Do More « The Washington … [...]

[...] Romer on Why the Government Should Do More « The Washington … [...]

[...] Romer on Why the Government Should Do More « The Washington … [...]

[...] Original post: Romer on Why the Government Should Do More – The Washington Independent [...]

[...] Romer on Why the Government Should Do More « The Washington … [...]

I my question is what kind of economist, in November 2008 “didn’t realize that November evening was just how large an economic nightmare lay before the new President and the American people”. I'm no economist but I, as a small business owner and full time employee of another small business, knew it was extremely bad and getting worse.

She is a lunatic!!!! Trying to cover her Keynesian economic policies that DO NOT WORK!

You do know that it is not the government who does the actual hiring? It is big business, not the government. So I suggest you target the corporations. However, I do believe the large corporations are not hiring for political reason. If you can't figure out why I'd be glad to enlighten you.

Great speech. I will be sure to read it. I, too, did not realize how bad the economic situation was on election night, but the realization did hit me about one week later. On inauguration day, amid the festivities, I mentioned to the people around me that Obama had a very, very difficult task in setting the appropriate expectations, due to the economic situation. Unfortunately, this he failed to do. I hope he is learning from his mistakes, because if not the GOP will be right back with commanding majorities in a few years.

Duh, she and the obama team are clueless on everything, thats what happens when you give a collge professor with no experience a job, what did the morons that elected him think they were getting? change that you can pee in

Can you elaborate on what “Keynesian” economic policies are?

This speech is comprised of unhelpful platitudes. And sympathizing with the American worker (me) doesn't validate her policies.

She is correct when she states, “The only surefire ways for policymakers to substantially increase aggregate demand in the short run are for the government to spend more and tax less.” I would place emphasis on 'in the short run' because that type of solution isn't palatable to me.

She only depicts a rosy way of sustaining the bubble for a bit longer.

Classical econ depends upon free markets. But with great depression Keynesians said must be some market failure. The failure is insufficient spending. People and bus horde money. GDP is a function of investment + consumption + gov. As consumption and investment consumption are low (horde money). Gov must take up slack and spend to suck up the horded money.

So it is a right wing conspiracy? ha.

Spending more and cutting taxes? Well, I like half of that equation. Government spending is the reason we have most the problems in the American economy today.

Spending less and cutting taxes is the solution.

But some economist say that government intervention in market has distorted market and created shortages and gluts (mal investment). What has happened in housing is gov has encouraged investment in housing (tax policy and FANNIE, FHA etc) So money pours into housing driving up supply and prices creating bubble. Solution is get gov out of markets. Let markets self correct by working off excess supply.

Generally, the gov't knows better than the private sector how to allocate capital efficiently in the market. That people's selfish tendencies don't further economic growth.

When she broadly advocates gov't spending, she is promoting taking taxpayers money and spending it her way. Wouldn't it be better for the taxpayers to spend it themselves, into activities they deem worthy of money?

These areas of the economy are hemorrhaging precisely because they are not profitable. Why should the public be forced to pay for this situation to persist?

If a recession were allowed to run its course, these unproductive activities would disappear. The capital involved would be transferred to more efficient and productive activities.

Generally, the gov't knows better than the private sector how to allocate capital efficiently in the market. That people's selfish tendencies don't further economic growth.

When she broadly advocates gov't spending, she is promoting taking taxpayers money and spending it her way. Wouldn't it be better for the taxpayers to spend it themselves, into activities they deem worthy of money?

These areas of the economy are hemorrhaging precisely because they are not profitable. Why should the public be forced to pay for this situation to persist?

If a recession were allowed to run its course, these unproductive activities would disappear. The capital involved would be transferred to more efficient and productive activities.

“What we didn’t realize that November evening was just how large an economic nightmare lay before the new President and the American people.” NO $%^! That's why you voted for him. Neither did he. “Hope”? That's all he had. Now we are hundreds of billions in debt (more debt in the last 2 years than the ENTIRE Iraq and Afghanistan wars) with a few temporary government (GDP sucking) jobs to show for it. You want to “spend more”? Great……..

Those who can’t do, teach. She should not even be doing that. Retail sounds like a good career choice for her.

Has anyone seriously looked at how our Government spends its money? There is not an efficent program, office or person in the entire system. Allowing them more control is what brought us to this point in time. Additional control will lead to the collapse of this once great society

I agree with Skidman0039. I knew the economy was in trouble in 2006 when a house on my street sold for double its actual value. At the time I figured either I wasn't earning much or the money being spent on these homes didn't exist. Turns out it wasn't me.

There's a great documentary about our current economic mess called I.O.U.S.A. You can see a short version of it at http://www.iousathemovie.com/ .

a large corporation acts only in its' self-interest. if they needed headcount, they would hire workers. NO company would refuse to hire needed workers for “political reason”, as you put it. if they could make more profit by hiring, they would. but put simply, the cost associated with hiring a new worker is so uncertain that companies are wary. companies are fearful to hire due to the uncertainty in new regulations and taxes, as well as the HUGE increase in costs for obamacare. that is what is depressing the job market

You can NOT spend your way out of debt. Somewhere along the line the government and the people of the USA are going to have to tighten their belts and let the chips fall where they may. The ride will be ugly, but we will survive.

So long, farewell! When a Keynesian economist doesn't understand the business community or the effects of uncertainty among business markets, it's time to leave. She was the person who tauted the 8% unemployment maximum if the stimulus plan was enacted. She said that the stimulus was the right size.

She failed in her job and will now be rewarded with a job at Berkeley. She will receive 2 pensions from the government. Talk about fat government and federal employees bankrupting the system.

are you serious? the last two paragraphs alone show the bias and utter ridiculousness of any of this being a “professional” means to an end. this is a horrible piece and no they shouldn't listen to her!!!

tell the people they employ that they only act in their self interest. fyi….corporations are made up of people so all of us that pull a non-govt paycheck are simply….selfish…i mean why else would we want the company to survive? so we can pay our mortgage. fathom that!

Oh, so you disagree with Romer? Interesting. To what economic training or experience do you owe your deep insight?

Congrats, you were part of a failing team. Now, you learned “economist”, trained by dope smoking proffessors, know nothing about the American Business and worker drive. So, Roll up your sleeves and get down to making an honest living providing for a family rather than run your mouth foolishly on something you obviously know nothing about. Industrialzation will get us out of this, not salesmanship. Thank God, he will only be president for one term.

the problem is gov't has almost no accountability….the taxpayers are forced to pay tax or be put in jail and lose everything, but we are not shareholders. they don' t lose their jobs (monetary income) when they screw up, they were well off to even be able to get into politics so it doesn't hurt them to lose anything. we should start putting them in jail for mismanaging our taxes.

Why not just say, “it's George Bush's fault”? The economy was in trouble when Obama took over. He made it a mess that may be too big to fix. Shrink Government spending, reduce taxes dramatically. That's the formula. We elected hope and change, what we needed was courage.

Why Saturday Night Live doesn't use this woman as a rich and endless inspiration for parody, I will never understand.

She didn't know the economy was a mess before Obama took office… and she calls herself an economist? Thank God she's leaving…

we can not expect for our economy to get fixed overnight, when it took years of major spendings from all of us. The banks were giving money away if you were able to breath, our goverment was spending billions of dollars overseas, we were getting money from our homes and buying new toys like nothing; now we are losing those same homes. It has taken this major economic crisis to wake us up and hopefully learn from it, to be better citizens, get involved with all levels of goverment so this does not happen again. its time to move forward and resolve our situation with whatever resources we have now. lets stop wasting our energy on what the future may bring us, and concentrate on stopping the bleeding now, because if we don't there will be no future for a lot of us. The question for you is this?What within your means do today, not tomorrow so, we can all have a better tomorrow?

i am not sure i get your point.

I keep hearing cut government spend. What do you wan to cut? What about defense, what about subsidies for sugar, corn, for huge agracorps. we desperately need to improve education and infrastructure. If we do these things we can have real growth, focused taxes on the wealthy, I mean people that make millions. The tax code is totally a joke and our focus is on today, not tomorrow.

“And then, after we finished the champagne (in Oakland?), we proceeded to implode the US Economy – based on a repeatedly unproven socialist-liberalist ideology – that will have a negatively lasting effect for decades! And, as an unintended consequence, we also imploded the liberal – democratic party for decades!”

“Maybe I'll go back to Berkeley now – where I belong with all the other nutjob liberals.”

bob, you are stupid. Taxing the wealthy is a cop out for an ill informed ignorant pseudo-economist. Furthermore, we are currently facing threats against our security, both domestic and foreign…why would we then cut defense spending? PORK my dear friend, pet projects are what need to be cut. The challenge is finding an individual willing the blaze a trail and not be swayed by lobbyist and political wish wash.

Romer says economists don’t know why “employers cut labor so much more than they ‘normally would’…”? Rubbish! Corporate economists are willfully blind. American workers have become completely dispensable. Interest rates are now almost as low as possible. Big corporations are profitable again and cash – rich. Yet hiring is stagnant. This stagnation is a demand side problem. Job creation in America could only occur, if after tax profit could be made from new hires. That would happen, if and only if, there was money-backed demand for goods and services.
Federal government Republicans and Democrats have connived for 40 years to subsidize neocartels of mega-corporations, “special interests” (banks, oil companies, military industrial, health care, agribusiness) and facilitate the real job killers: automation, merger and acquisition, and job export. Now, with workers and small businesses impoverished, effective consumer demand, needed to fuel job creation, has failed. Republicans Voodoo Economics of tax and spending cuts are a cynical “ruin – to – rule” strategy to get reelected. Democrats have a few demand side ideas, but won’t abolish the filibuster to pass them. Deficit hawks threaten any such moves.
Consumer debt could be re-structured to lower interest costs through federal borrowing and direct payoff of consumers’ debts. The consumer pays back the government at lower interest. Private wages could be subsidized much more heavily. Shared work: removal of earnings cap for Social Security tax, increased benefits, earlier, partial retirement, apprenticeship, cutting overtime, mandatory vacations are all possible. But voters would need to apply shock therapy to get this: mass de-registration from both the Republican and Democratic parties. Demand simple majority rule in the Senate and massive new stimulus.

[...] Romer on Why the Government Should Do More « The Washington Independent [...]

[...] Romer on Why the Government Should Do More « The Washington … [...]

Did you even read the text of the speech? When she said “we” didn't realize the extent of the economic problem, she was talking about economists nationwide. Do you really think Mccain's economists were not in the crowd she was speaking of? If you'd only take off your blinders, you'd realize we were saved from something much much worse. Of course since it didn't happen, we can't prove it, so you and those like you will just consider the weaker economy now to be completely the fault of the Obama administration, rather than those who got us in this problem. Lax regulation of the financial industry is the problem, not spending to keep us from going off the cliff.

[...] Romer on Why the Government Should Do More « The Washington … [...]

[...] Romer on Why the Government Should Do More – The Washington Independent [...]

[...] Romer on Why the Government Should Do More « The Washington … [...]

[...] Romer wants more stimulus; five reasons for economic optimism …Washington Post (blog)Romer on Why the Government Should Do MoreThe Washington [...]

[...] return from their August recess, there is a short window of a few weeks to pass any new …Romer on Why the Government Should Do More The Washington IndependentRomer Calls for Increased Spending FrumForumall 298 news [...]

Yet hiring is stagnant. This stagnation is a demand side problem. Job creation in America could only occur, if after tax profit could be made from new hires. That would happen, if and only if, there was money-backed demand for goods and services.

[...] her post as the head of the White House’s Council of Economic Advisers this week, Christina Romer declared the turnaround “insufficient.” The economy “is growing, but not fast enough to create the [...]

[...] Romer wants more stimulus; five reasons for economic optimism …Washington Post (blog)Romer on Why the Government Should Do MoreThe Washington [...]

[...] shouldn't refuseEdmond SunEconomic Smoke and MirrorsTown HallThe AtlanticWire (blog) -The Washington Independent -American Thinker (blog)all 720 news [...]

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1. Energy independence & Health care reform were two primary challenges, pledges in the presidential election and can be a framework in the healing process, while the stimulus package has been described as a GROUNDWORK for it.

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2. Job creation & Sustained GDP growth would be a final phase in the healing process.

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3. It is no surprising the stock market & its sentiment go through frequent up & down in the high hopes of full recovery.

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4. None of the media has mentioned the recovered value in the stock market brought on by the stimulus package, in marked contrast with the serious reports over the lost value of $trillions at the beginning of cash under the mattress.

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5. In the face of oil money spill & huge trade deficit, the GOP chanting deficit stubbornly has taken a hands-off attitude on the Energy independence.

6. Pain at the pump dominated the economy news before cash under the mattress, but all of a sudden, the subprime mortgage crisis took the place of it as a root cause, potentially in an attempt to protect the oil & coal industry.

[...] Romer on Why the Government Should Do More « The Washington Independent [...]

This is exactly what we need, you people pushing for our further empowerment. The transfer of power and control over your own lives from you to us is for your own good, of course.

http://youareproperty.blogspot.com/2010/05/just-way-you-wanted-it.html

Canadian Government Threatens/Blackmailing Canadian auto workers Union…

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The consumer pays back the government at lower interest. Private wages could be subsidized much more heavily. Shared work: removal of earnings cap for Social Security tax, increased benefits, earlier, partial retirement, apprenticeship, cutting overtime, mandatory vacations are all possible.

[...] Romer on Why the Government Should Do More « The Washington … [...]

[...] Romer on Why the Government Should Do More « The Washington … [...]

[...] Romer on Why the Government Should Do More « The Washington Independent [...]

[...] Romer on Why the Government Should Do More « The Washington … [...]

She is a lunatic!!!! Trying to cover her Keynesian economic policies that DO NOT WORK!

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