Wednesday, January 14, 2009

Conservative alternative economic recovery package

Economic Recovery: A Choice, Not An Echo presents a comprehensive set of policies that would steer us back into long-term economic growth. Good list of what needs to happen - "What he said."

Note that one critique is that many provisions are not geared towards the 'immediate problem' of the recession. True, but that misses the point. The whole problem with the Obama plan and the thinking in Washington is that it is very short-term 'crisis' focussed. We already have $700 billion in TARP funds and a Fed 0% interest rate policy for the short-term crisis. We need to think about the LONG-TERM economic health of USA. Adding another $1 trillion to the deficit to attempt a short-term temporary boost to GDP output in 2009 will help in the margins now, but add to a debt burden that will saddle us later. It will hurt more than help, especially if it is on non-productive boondoggle spending.

As such, we should take the opportunity NOW to think about what policies we need in place for long-term economic growth. The conservative 'alternative' presented does that.

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