Biden said yesterday that the Obama Admin misread the economy.
From ABC's George Stephanopoulos: "Biden acknowledged administration officials were too optimistic earlier this year when they predicted the unemployment rate would peak at 8 percent as part of their effort to sell the stimulus package. The national unemployment rate has ballooned to 9.5 percent in June -- the worst in 26 years.
"The truth is, there was a misreading of just how bad an economy we inherited," said Biden, who is leading the administration's effort to implement it's $787 billion economic stimulus plan.
snip
The vice president argued more time is needed for the stimulus to work.
"We misread how bad the economy was, but we are now only about 120 days into the recovery package," he said. "The truth of the matter was, no one anticipated, no one expected that that recovery package would in fact be in a position at this point of having to distribute the bulk of money."
Biden didn't rule out a second government stimulus package, but downplayed calls from Nobel Prize-winning economist Paul Krugman this week that a second stimulus will be needed.
There are many economists that agree with Krugman. How about Joseph Stiglitz, Robert Reich, Ravi Bahtra. The stimulus wan't enough and the TARP money went to Banks that didn't need the funds. What we should give the banks is a nice package of rules and regulations that would keep their lawyers and bean counters busy for awhile trying to find loop holes and ways around these rules and regs!
And just to throw another wrench on the pile, the New York Times has an article today about the unstable Oil Prices and how it will hurt our economy. But this article also says:
"The instability of oil and gas prices is puzzling government officials and policy analysts, who fear it could jeopardize a global recovery. It is also hobbling businesses and consumers, who are already facing the effects of a stinging recession, as they try in vain to guess where prices will be a year from now — or even next month."
This article goes on to say:
While the movements in the oil markets have been similar to swings in most asset classes, including stocks and other commodities, the recent rise in oil prices is reprising the debate from last year over the role of investors — or speculators — in the commodity markets.
Government officials around the world have become concerned about a possible replay of last year’s surge. Energy officials from the European Union and OPEC, meeting in Vienna last month, said that “the speculation issue had not been resolved yet and that the 2008 bubble could be repeated” without more oversight.
Many factors that pushed oil prices up last year have returned. Supply fears are creeping back into the market, with a new round of violence in Nigeria’s oil-rich Niger Delta crimping production. And there are increasing fears that the political instability in Iran could spill over onto the oil market, potentially hampering the country’s exports.
So in my opinion, the Foxes guarding the economic Hen House from the Obama Admin has to start broadening their outlook and accept the opinions of other economist that our stimulus package wasn't enough. The falling employment shows this with fears of a double digit jobless count on the horizon.
And G W Bush is in Texas, in his recliner, with his feet up, and his wide screen TV watching all the destruction his 8 years in office has created. Doesn't seem right!
5 comments:
I've just started reading Matt Taibbi's Rolling Stone article on Goldman Sachs but from what I have read I'm more convinced than ever that Wall St is out of control and sadly way too powerful and pervasive in our government. ...more later.
..about those oil prices. You'll learn the last rise in oil prices was manipulated by yep, Goldman Sachs and cronies.
Here's the deal as I see it. The administration is looking through the eyes of Wall St. and not Main St. They talked about this at length on the current Bill Moyers Journal.
I thought we were beyond Trickle Down Economics, that's so 1980's.
I don't mind telling you I have never had much of a head for economics. Still, what has bothered me and bothers me still is the deification of capitalism. How can you repair a system when the prevailing "knowledge" is that the system is infallible? I suspect we'll get by with massive jerry-rigging, but I can't stop thinking that the underpinnings will need to be fixed and most of us will be bristling at the idea that it's not a good system after all.
After reading Taibbi is there any doubt that we are living in an oligarchy? Goldman Sachs runs the whole country and the congress are their lapdogs until we some how get election reform. What a conundrum.
I agree with CatChew and mhappenow, capitalism is not the perfect system, far from it, and when have we not been subjects of the oligarchy?
I was taught economics is making the best use of scarce resources. If that's the case, we have not seen economics in this country for quite some time. The false logic of endless growth and resources and controllable risk are the bright shiny objects the "long-term-greedy" as they like to be called, dangle in front of use while they pick our pensions and pockets.
It will take campaign finance reform to eventually give us elected officials whose reason for participating in government is to do the work of the people and not simply go to DC to get rich and powerful.
I don't know what it will take to achieve that. I'm only as smart as the last thing I read but when I hear Lessig talk about it, it makes perfect sense. I want to see it in my lifetime and will support it any and every way I can.
As far as the economy there are movements already under way like the B Corp project that gives me lots, no tons, of hope.
(I just want to thank toniD for providing this space with real thought provoking posts. If I hang out here enough I might talk pretty politics one day ;-)
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