Reverse Migration

by hilzoy The Washington Post has a story about workers who had left their native countries to find work heading home again: "Thousands of foreign workers, including London School of Economics graduates with six-digit salaries and desperately poor Bangladeshi factory workers, are streaming home as the economy here suffers the worse recession in Southeast Asia. … Read more

More Cramdowns!

by hilzoy The House seems to have postponed action on mortgage cramdowns until tomorrow, which gives all of us one more day to contact our Representatives and let them know our views. The best post I know of on this topic is from Tanta; this discussion in Business Week is also good. Here's my take: … Read more

“There Is No Shame”

by hilzoy The NYT has an interesting story about executives who have been laid off, and have had to take lower-paying, lower-status jobs to make ends meet: "Mark Cooper started his work day on a recent morning cleaning the door handles of an office building with a rag, vigorously shaking out a rug at a … Read more

Now That’s What I Call Toxic!

by hilzoy During the past year or so, I have sometimes wondered exactly how toxic all those toxic assets really are. It's hard to tell, since they differ from one another, and are not traded that often. However, the Financial Times (h/t) has some answers: "In recent weeks, bankers at places such as JPMorgan Chase and … Read more

Obama’s Housing Plan: The Second Time As Farce

by hilzoy One of the dumbest things I've heard about Obama's housing plan was on CNN last night (AC 360 2/20/2008; transcript accessed via Lexis/Nexis): "TOM FOREMAN: Many who oppose the bill, however, seem to understand it fine. They just think it's wrong. (on camera) Opponents argue this plan simply has no clear way to determine if a … Read more

Obama’s Housing Plan

by hilzoy I've been puzzled by the response to Obama's housing plan. There seem to be a whole lot of people who think that it's mainly designed to help out people who knowingly got themselves into trouble by living beyond their means, while those of us who were financially responsible are left out in the … Read more

Charming Company You’ve Got There

by publius Even for the most cynical, this one was hard to believe.  The Post ran a story today about how more employers are challenging the unemployment benefits claims filed by their former employees.  Generally speaking, employees are entitled to these benefits unless they were "fired for misbehavior" or quit.  The ultimate benefit to the … Read more

Wasteful Spending

by publius

We’re all about bipartisan understanding here at ObWi – so I wanted to find a good thought-provoking critique from someone who feels the stimulus bill is full of waste.  I needed a different perspective.  So I checked out the Corner and K-Lo obliged.  To illustrate the stimulus bill’s “wasteful spending,” K-Lo dutifully linked to this longer NRO article, which meticulously outlined 50 “of the most outrageous items in the stimulus package” (generally deemed outrages because they don’t stimulate).  I decided to check this list out and report back to you, fair reader.

First outrageous item on the list – the bill provides $50 million for the National Endowment of the Arts, so that the “unemployed can fill their days attending abstract-film festivals and sitar concerts.”  That’s really funny.  And you know who else would find it really funny?  The 5 million or so Americans who work in the arts industry (including in support roles as, say, janitors).  The people laid off by the Los Angeles Opera last month would also find it especially hilarious.  After all, if there’s any one product that should be left entirely to market whims, it’s art.

Moving on to the next “outrageous” item on our list…  $380 million for the “Women, Infants, and Children” Program.  Certainly sounds wasteful to me.  When I first read this part, I remember thinking, “could they be talking about the ‘WIC’ program?”  But I quickly dismissed the thought.  The WIC program is about giving money to poor parents to buy food for kids.  It’s like the posterchild for stimulus.

Well, as it turns out, the first letters of “W”oman, “I”nfants, and “C”hildren do in fact spell WIC.  And that’s exactly the program they were talking about.  Surely we can all agree that there is nothing more outrageous and non-stimulative than giving money to poor parents to buy food for children.

Next up — $300 million for “grants to combat violence against women.”  Another outrage.  And very non-stimulative – after all, new hiring by violence programs and transitional housing are not the kind of things that will pump money back into the economy.  And besides, protecting violence against women isn’t a top priority now that we have Heller – they can just arm themselves.  See how easy downward adjustments are?

Moving on — $2 billion for “child-care block grants.”  Really?  I mean, really?

Next up — $6 billion for university building projects.  Yep, doesn’t get much less stimulative than that.  This one seemed so absurd that I actually scrolled back up to see what they had written about it – “Perhaps spending $6 billion on university building projects will put some unemployed construction workers to work.”  That’s no reason, though, to remove it from the List of 50 Outrages. 

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EPI Speak, You Listen

by publius I incorporate by reference everything written in this EPI post.  The nickel version is that the Nelson/Collins amendment removed some of the most stimulative provisions of the entire bill.  Take it away boys: The bipartisan amendment to the Senate recovery plan eliminates several of the best targeted, most stimulative provisions in the bill.  … Read more

About Those “Cuts”

by publius The bold centrists certainly deserve some blame for sacrificing hundreds of thousands of state jobs in the name of abstract Broderian ideology.  But not all of it.  The fact that states even need this money in the first place shows how deeply flawed – and unfair – most of our states’ budgets are.  … Read more

State Aid Is Stimulus . . . Don’t Cut It

by publius So we have a stimulus compromise.  Needless to say, I’m in the Pelosi wing at this point – and I hope she wrestles the needless and counterproductive cuts back in. But here’s a more serious question – what exactly were Nelson and Collins trying to accomplish?  The whole thing seemed like a bad … Read more

The Debate Is Joined

by publius Obama is starting to get his second wind – for the first time, he’s making aggressive and even openly partisan attacks against the stimulus opponents.  To which I say – it’s about time.  The Obama team has a tendency to be a few days late on tactics, but they’re pretty good when they … Read more

The State of the Stimulus

by publius I’m sensing a bit of Democratic anxiety – maybe even panic – about the stimulus bill.  And while I’m not exactly thrilled with how things are going, I think everyone needs to step back, chill, and look at the bigger picture. First, the stimulus bill remains one of the most aggressively progressive efforts … Read more

Obama Brings the Pitchfork

by publius This image from tomorrow’s NYT made me so happy, I had to cut and paste it.  Quoting wasn’t enough – you have to see it in its natural splendor for the full effect. __________________________________________________________ ___________________________________________________________ This is very good news – and surprisingly aggressive, frankly (assuming there aren’t loopholes).  And while I agree … Read more

More Pitchforks Please

by publius A few days ago, a commenter argued that I should stop accusing Republicans of acting in bad faith on economic matters.  Instead, I should realize that most conservatives sincerely prefer these policies because they think the policies will ultimately help the country.  I’ve been thinking more about it, so here are some additional … Read more

AIG Again

by hilzoy From the WSJ: "American International Group Inc. is in discussions with the government about Washington backstopping some of its troubled assets and is considering selling units through initial public offerings. (…) Backstopping of assets would be similar to government guarantees on troubled assets owned by Citigroup Inc. and Bank of America Corp.Were the federal … Read more

They Just Don’t Work

by publius A common critique I get in the comments (h/t Brett) is that I ascribe bad faith to Republicans too often.  That is, I should acknowledge that most Republicans favor policies because they think those policies will ultimately help people (regardless of their redistributive effects).   And that’s a fair critique – the Bush years … Read more

The House GOP Goes All In

by publius When you start losing in Texas Hold ‘Em, you eventually face a difficult choice – a crossroads if you will.  The problem is that your chip stack is getting smaller and smaller while the blinds take bigger and bigger chunks of your money each turn.  The choice then is whether to go down … Read more

Make It Bigger

by publius Tomorrow’s Post article (via TPM) usefully outlines some criticisms of the current stimulus plan from Democrats – namely, too many tax cuts and too little public infrastructure investment.  This is a good development – the pressure on the bill shouldn’t be coming solely from the Eric Cantors of the world.  There needs to … Read more

A Stimulus Question

by publius Help me out here economists.  There's always been an incentive among conservatives and pro-monetary policy advocates to argue that the New Deal (as fiscal stimulus) wasn't very effective.  The modern policy implication, of course, is that we shouldn't be doing fiscal stimulus. The most common variation of this historical argument is the one … Read more

Nooooo! No More Tax Cuts!

by hilzoy From the NYT: “President-elect Barack Obama plans to include about $300 billion in tax cuts for workers and businesses in his economic recovery program, advisers said Sunday, as his team seeks to win over Congressional skeptics worried that he was too focused on government spending. The legislation Mr. Obama is developing with Congressional … Read more

Value At Risk

by hilzoy One of the things I love about blogs is that they allow people who really know what they’re talking about to respond, publicly, to what they read, and to do so almost instantaneously, so that the rest of us can benefit. There’s a wonderful example today. It starts with a long NYT article … Read more

Taking Our Medicine

by hilzoy The NYT has a long piece on the financial meltdown in two parts: 1, 2. It’s very much worth reading. One point in particular jumped out at me: “THERE are other things the Treasury might do when a major financial firm assumed to be “too big to fail” comes knocking, asking for free … Read more

No More Double Standards

by hilzoy I’ve been wondering why such different standards are applied to financial executives and Detroit’s auto workers. Consider: * The financial executives helped cause the present meltdown. Auto workers did not. * The financial executives run their firms, and are responsible for their troubles. Auto workers and their union, by contrast, just got themselves … Read more