Economic Stimulus 101 – Part 2
The U.S. national debt surged past $10.9 trillion in March. What are the consequences?
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“I don’t think we’re yet in as severe a circumstance but the basic structural similarity is there.”
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“What’s different about our circumstances today? There’s more surplus capital; we have more social safety nets.”
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Keynes theorized in the 1930s about why markets don’t correct themselves, and today’s policies are based off those theories.
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“The money [today] is going to be more productively used than… through military Keynesianism.”
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“Even though the stimulus package looks very big, it is actually in historical perspective not all that big.”
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An increase in inequality and decrease in income mobility made the U.S. economy “more dynastic than dynamic.”
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“I think [rising inequality] is a real problem for our economy and may have contributed to the shortfall of demand.”
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“Over the last 40 years, productivity has continued to increase [while] real wages have been stagnant since 1975.”
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“Instead of paying taxes, [the rich] buy government bonds and then get paid interest on those bonds.”
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Produced by Jackie Hai, Richard Caesar and Frank Godinho, AmherstWire.com.
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