Monday, March 2, 2009

CBO on Stimulus

I am not a huge fan of the stimulus. I think the range of programs is close, but that it should have been much larger. But, here is the CBO on the stimulus multiplier effects.

The output gap is still massive.



Sunday, March 1, 2009

Weekend Round-up - Perception Gap

Interesting piece from the New York Times about the recession, and when growth will resume.

Also, WSJ Real Time Economics has some great commentary on Warren Buffett's shareholder meeting this weekend.

Also, Tyler Cowen has a great link to an article mainly about unconventional monetary policy, and Matt Y. debunks bad arguments from the right and the left pretty much on a daily basis.

My own personal take away from the weekend of television and blogs was a clear perception gap in our democracy. It is astounding to me how upper middle class and rich people talk to their audience.

As Matt pointed out David Gregory, Brian Williams and many hosts are talking about tax increases, when 95% of families will being getting tax cuts. I'm no expert, but my guess those 95% are most of their viewers.

Greg Mankiw talked about how difficult it is for economists who decide to do public service, maybe I'm overly sensitive but it does seem that if this idea is onerous - then unemployment must be Armageddon (maybe my lack of family skews this perspective).

It is quite striking to me this idea that despite quantitative knowledge people's perception of the world based on their own situation skews objectivity one way or another. This is the true legacy of the Second Gilded Age and the income inequality that it has left us.