The next American economy
James Forsyth 11:11pm
Obama’s $819 billion stimulus package has just passed the House, albeit without a single Republican vote. But too often lost from the conservation about the stimulus and how effective it will be is what the US economy will, and should, look like once this storm has been weathered. In short, where will the growth come from?
David Leonhardt has a fantastic piece in the upcoming New York Times magazine looking at this question. His argument is that education is the absolute key to this question. As he notes:
“The median male worker is roughly as educated as he was 30 years ago and makes roughly the same in hourly pay. The median female worker is far more educated than she was 30 years ago and makes 30 percent more than she did then.”
The piece has lots of interesting stats in it. Two stood out at me—one as a cause for optimism and one for pessimism.
First, the good news:
“Over the coming 25 years, if growth could be lifted by just one-tenth of a percentage point a year, the extra tax revenue would completely pay for an $800 billion stimulus package”
This does make one rather less concerned about the size of the stimulus. But then consider this:
“Annual economic growth in the current decade, even excluding the dismal contributions that 2008 and 2009 will make to the average, has been the slowest of any decade since the 1930s.”
Previous
porkbelly
January 29th, 2009 3:57am Report this commentWhat this article really illustrates is the nature of the huge power grab underway in the U.S. As the private sector totters a hungry alliance of sweaty-palmed academics, bureaucrats and politicians is poised to seize control over the economy, the State, and the populace. They imagine the the solutions to the current crisis are the sort of trite Malcolm Gladwellesque magic potions advocated by the article as though it were simply a matter of pushing the right buttons and people would respond like so many gears and pistons. As Jeremy Clarkson would put it, "how hard can it be?".
Well, if it were as straightforward as the apologists for state socialism believe we should all be eating borscht and cheering the Red Army squad to another victory over Dynamo. They can dress it up with all the green ribbons they like, they can bandy around the word "smart" every sentence, but socialism it is.
And the concentration of power at the center will inevitably bring with it the illusion of divine insight, the arrogance, and ultimately the corruption and intolerance that always accompanies unchecked governance.
Kevyn Bodman
January 29th, 2009 5:22am Report this commentSKYNEWS are reporting that not a single Republican voted for the Chosen One's package as if the Republicans' voting is reprehensible.
They are chosing not to say that The Chosen One couldn't carry all his own party on this plan.
I'm going to get in my car now and listen to the BBC World Service. I fully expect them to blame those Republicans too.
Ian C
January 29th, 2009 8:29am Report this commentThe Republicans ensured that Obama owns the 'stimulus' package which is said to be nothing more than a catch up on the Democrats wish list with only about 12% (c $90bn)of the package actually going to do anything stimulating. Amazing.
How not to waste your political and financial capital. Politicians everywhere, just do not/ clearly can not learn. They see their role once elected so differently from why they won their election.
What is the 'change' element in this? God help America.
Verity
January 29th, 2009 2:23pm Report this commentObama has Destructor written all over him. It is baffling that so many millions failed to see it.
Porkbelly is correct: "As the private sector totters a hungry alliance of sweaty-palmed academics, bureaucrats and politicians is poised to seize control over the economy, the State, and the populace." In other words, the same cadre that wants to control progress and human advances with the attack dog of "global warming" and "green" agendas. I would add to Porkbelly's list "local authority covens".
The same cadre that surged forward when Blair put out the welcome mat and are now, under Brown, essentially in unelected control of our country.
Americans will rue the day they voted for Obama.
Tankus
January 29th, 2009 8:17pm Report this commentWill brown plagiarize this one for the next budget ?
...to be paid for post 2012 by future double digit growth rates on the back of his world leading fiscal stimulus .
TGF UKIP
January 29th, 2009 9:17pm Report this commentJames, I am more than a little surprised at the angle you have chosen to pursue with this piece.
Surely, the huge story here is that NOT ONE REPUBLICAN elected to vote with The Chosen One.
Putting this into context, over the two terms of the Bush Presidency so many Congressional Republicans sold out their party and their president particularly on Iraq that they almost became a parallel Democrat Party.
That The Chosen One has so easily and quickly united the Republicans should be, I would have thought, not only worthy of celebrations but of Coffee House headlines too.
I really do hope that I'm not going to have to start referring to the Speccie as the Cameron/Obama fanzine.
Back to top