Sunday, November 30, 2008

Why the Government Must Now Spend “Big Time” on Infrastructure, Social Services, and Green Technologies

The Rebirth of Keynes, and the Debate to Come

Wednesday, November 26, 2008

by Robert Reich

The economy has just about come to a standstill – not so much because credit markets are clogged as because there’s not enough demand in the economy to keep it going. Consumer spending has fallen off a cliff. Investment is drying up. And exports are dropping because the recession has now spread around the world.

So are we about to return to Keynesianism? Hopefully. Government is the spender of last resort, which means the new Obama administration should probably be considering a stimulus package in the range of $600 billion, roughly 4 percent of national product -- focused on building and repairing the nation’s crumbling infrastructure, providing help to states to maintain services, and investing in new green technologies in order to wean the nation off oil.

(Read more: Click link above.)

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