Britain Falls Prey to Fiscal Austerity Fad
Posted in Main Blog (All Posts) on October 23rd, 2010 4:31 am by HL
Britain Falls Prey to Fiscal Austerity Fad
Paul Krugman, New York Times
In the spring of 2010, fiscal austerity became fashionable. I use the term advisedly: the sudden consensus among Very Serious People that everyone must balance budgets now now now wasn’t based on any kind of careful analysis. It was more like a fad, something everyone professed to believe because that was what the in-crowd was saying.And it’s a fad that has been fading lately, as evidence has accumulated that the lessons of the past remain relevant, that trying to balance budgets in the face of high unemployment and falling inflation is still a really bad idea.
What’s at Stake: Protecting Rebuilt Regulatory State
John Judis, TNR
This is the second in an occasional series examining how Republican control of Congress might affect policy debates in the next two years.Democrats are warning that if Republicans capture the House—and perhaps also the Senate—in this November’s election, they would abolish cabinet departments, repeal Obamacare, and privatize social security. They might want to do these things, but they won’t be able to overcome a Senate filibuster or a presidential veto.
Dems Try to Revive Female Voters’ Enthusiasm
Cooper & Davey, NYT
SEATTLE – Women came out strong for Barack Obama in 2008. Now, with barely 10 days before the midterm elections that are looking increasingly perilous for his party, he is trying to win them back.Mr. Obama turned his attention on Thursday to convincing the female voters who helped deliver the presidency to him not to abandon the Democratic Party in its hour of need. In a series of orchestrated events, the White House sought to make the case that Mr. Obama’s two years in office have already been a boon to women all over the country.
Fannie, Freddie May Need Infusion
Binyamin Appelbaum, New York Times
WASHINGTON — The federal bailout of Fannie Mae and Freddie Mac may be winding down with relatively little additional cost to taxpayers so long as the economy continues to recover. But if the economy tips back into recession, the bailout could nearly double in size, according to new government projections announced on Thursday.The troubled mortgage companies are likely to require about $19 billion in additional federal aid over the next three years, according to a projection by the Federal Housing Finance Agency.
