Paul Krugman in the NYT: “While coronavirus relief legislation is often called ‘stimulus,’ that’s not what Biden is trying to do. The economy in 2021 isn’t like the economy in 2009, depressed because there isn’t enough demand; we haven’t fully recovered because we’re still on partial lockdown, with some activities curtailed by the risk of infection.
“The goal of policy in this situation isn’t to pump up spending, getting people to eat out and travel. It is, instead, to help people, businesses and local governments get through the difficult period until widespread vaccination lets us go back to business as usual.
“And we know, as certainly as we know anything in economics, that the economy will be depressed at least into the summer and probably beyond. The last package didn’t provide remotely enough aid to get us through those months. Asking whether that package boosted the economy therefore completely misses the point; it’s obvious that America needs another round of disaster relief.”
Unity is a fine goal, but don?t expect much cooperation.
Paul Krugman in the NYT: “You might think that Republicans would set the plutocratic imperative aside when the case for more government spending is compelling, whether it’s to repair our crumbling infrastructure or to provide relief during a pandemic. But all indications are that they believe — probably rightly — that successful government programs make the public more receptive to proposals for additional programs.
“That’s why the G.O.P. has tried so frantically to overturn the Affordable Care Act; at this point it’s clear that Obamacare’s success in cutting the number of uninsured Americans has created an appetite for further health care reform.
“And that’s why Republicans are unwilling to provide desperately needed aid to economic victims of the pandemic. They aren’t worried that a relief package would fail; they’re worried that it might succeed, showing that sometimes more government spending is a good thing. Indeed, a successful relief package might pave the way for Democratic proposals that would, among other things, drastically reduce child poverty.”
Why Senate Republicans won’t help Americans in need.
Paul Krugman in the NYT:”But if you’re trying to assess the candidates’ economic claims, you should know that Trump’s predictions of a Biden bust lack credibility, not just because Trump lies about everything, but because Republicans always predict disaster from progressive policy, and have never yet been right.
“And you should also know that Biden’s assertions that his plan would give the economy a significant boost are well grounded in mainstream economics and supported by independent, nonpartisan analyses.
“So Biden’s economic claims are, in fact, credible; Trump’s aren’t.”
The former vice president?s tax and spending claims are credible; Trump?s aren?t.
The covid recession was a mild setback for those at or near the economic top and a depression-like blow for those at the bottom, according to a Washington Post analysis.
Nicholas Kristoff in the NYT: “The newest Social Progress Index, shared with me before its official release Thursday morning, finds that out of 163 countries assessed worldwide, the United States, Brazil and Hungary are the only ones in which people are worse off than when the index began in 2011. And the declines in Brazil and Hungary were smaller than America’s. …
“The United States, despite its immense wealth, military power and cultural influence, ranks 28th — having slipped from 19th in 2011. The index now puts the United States behind significantly poorer countries, including Estonia, Czech Republic, Cyprus and Greece.”
A measure of social progress finds that the quality of life has dropped in America over the last decade, even as it has risen almost everywhere else.
Paul Samuelson famously quipped that the stock market correctly predicted nine of the last five recessions. The same could be said of inflation hawks like Robert Samuelson and bouts of inflation.
The Fed’s new guidelines could repeat mistakes of the past.
Paul Krugman in NYT: “So here’s the current state of America: Unemployment is still extremely high, largely because Trump and his allies first refused to take the coronavirus seriously, then pushed for an early reopening in a nation that met none of the conditions for resuming business as usual — and even now refuse to get firmly behind basic protective strategies like widespread mask requirements.
“Despite this epic failure, the unemployed were kept afloat for months by federal aid, which helped avert both humanitarian and economic catastrophe. But now the aid has been cut off, with Trump and allies as unserious about the looming economic disaster as they were about the looming epidemiological disaster.”
Optimism about Apple?s future profits won?t pay this month?s rent.
Bloomberg: Americans Hold Huge Pile of Cash That’s Key to Economic Recovery
And probably a lot more pragmatic.
New measures by the European Central Bank and the German government to combat the economic damage caused by the pandemic have exceeded expectations.
Warning: this article contains treasonable noticing of seditious facts. It could cause heretical thinking. Do not read!
Danes haven’t built a “socialist” country. Just one that works.