Government Spending Archive

Re: What about the Depression?

[Skip to the end] Yes, and gasoline consumption went up a bit as well. Down only 4% year over year. The deficit is also ‘automatically’ getting larger as well. We could stop declining as fast and just go into ‘muddle through’ mode at higher levels of unemployment. And this could encourage the ...Read More

Review of today’s government actions

[Skip to the end] Two ‘bailouts’ today, the Fed asset purchase program and Citibank: Comments on the asset purchase program: Major theme- the answer to the housing and automobile issue is consumers with enough income to be able to afford their mortgage payments and car payments along with expanding employment prospects to ...Read More

Thoughts on the bailout of Freddie Mac and Fannie Mae

[Skip to the end] It comes down to public purpose. The agencies were set up to provide low cost funding for moderate income home buyers. They have done that reasonably well. However, for probably 20 years I’ve been saying the agencies should fund themselves directly with the Treasury or Fed financing bank ...Read More

Reuters: Nominal growth to support asset prices

[Skip to the end] Nominal growth continues and will continue to support asset prices over time. To the extent there is not a sufficient desire to spend income, the government has the options to either cut taxes to increase private spending and/or increase government spending with a bid for those idle resources. ...Read More