10 comments on “Rebuttal to Jason’s “Reality Based” Defense of the Stimulus

  1. You make a great point about the diversion of discussion on certain topics, Marc.

    The same type of diversion from discussing true relative points also seems to occur heavily on the topic of Global Warming as well. I regularly hear and read supporters of the man made global warming theory say things like, those scientists were paid of by big oil or that research was funded by the coal industry.

    In reality, if it is good science, it is good science and the research should stand up against peer revue regardless of the source of the funding for the project. The same thing happens when people try to use the demonization of Rush Limbaugh to discredit and argument simply because he also used it. If Rush Limbaugh said the sky was blue, would the opposition be arguing that it is red, just because Rush said it? If Rush Limbaugh speaks the truth then he speaks the truth.

    We shouldn’t forget, that Rush is rarely just making stuff up out of thin air but repeating theories that he himself has heard and have come to make sense to him. This is what the majority of us do the majority of the time. Occasionally someone will take some of those ideas and improve on them slightly then pass them on. In reality this is exactly what good discussion does. If forms new ideas by bashing old ideas against each other. Eventually the better ideas rise to the top. But if we discredit an idea simple because of a perceived source we forever short circuit that idea and drive a wedge between those who have adopted competing philosophies.

    I don’t mean Jason is purposely trying to use this technique of discrediting the source to discredit the information. We all have a tendency to do it. Certainly there are many who do the exact same thing every time Obama speak on almost any topic. Still, if we are going to work towards a resolution of these serious issues that face our nation, we can’t start shooting ideas down simply because they are also being spoken by people on the other side of the debate that we personally dislike or distrust.

    Ultimately, this entire debate is about two opposing economic philosophies, not two opposing people.

  2. I have a question maybe someone can answer for me… What would happen if nothing is done? I am looking for specifics in terms of unemployment, GDP, etc. I have looked around and have not found any projections, or analysis of what the SPECIFICS would resulting from inaction. I am not arguing for inaction, so please do not argue that point.

    All I have heard are words like, “Catastrophe” “Depression” “Collapse” “Melt down” and on and on, if nothing is done. Are there any projections based on what would happen if the Democrat Stimulus is not passed? Obviously projections are not full proof, but in the business world projections are used in nearly EVERY company to plan for the future. In this debate I am afraid that we have taking the “leave it alone” approach completely off the table, and I am wondering why that is not an option. Again, I am not arguing for inaction, but simply wondering why it has been completely taken of the table as as an option. I guess my point is that when we are talking TRILLIONS of dollars of debt to foreign governments we should know, as best we can, what it is “saving” us from.

  3. ok, here goes, I’ll take them one at a time.

    1 – Granted, you said it was doubtful that it was the case, but if you agree that it’s possible then aren’t you just saying that all Obama is doing is pushing a partisan agenda without regards to the economy? If that’s the case aren’t the republicans doing the same thing? Well, if that’s true, we’re in trouble.

    2 – don’t know about this one really, I don’t see it in your post, so maybe you didn’t say it (I didn’t listen to the show that day, maybe it was on air), or maybe Jason was responding to the right wing talking point assuming you’d said it. You do point out that everyone rails on Bush tax cuts while saying Obama’s are a good idea, which is kinda like saying tax cuts are a good thing. Ok I was reaching there, but at least I tried.

    3 – it’s ironic that you’re now concerned about the debt, after 8 years of not only war spending, but a lot of tax cuts at the same time. If you’re against deficit spending then you should have spoken up against it for the last 8 years too. This applies to both sides of this, those on the left complaining about the Bush debt for 8 years can’t keep quiet now just because it’s Obama doing it. Personally I don’t like deficit spending, but I also don’t like the option of riding it out, money has to be spent, let’s just pay it off fast. Oh also, the war spending has stimulated the economy of the federal contractors, last I heard blackwater was doing ok in these rough economic times.

    4 – expanding unemployment benefits is a gap filler, you have to get people spending, if those without jobs can spend for a while longer until they’ve found a job that will help the economy over all because when they spend their money companies make money, and hire people (not all job creation is direct), not to mention it allows them to do things like feed their kids, which isn’t a bad thing. And before you go down that social welfare road consider the increased difficulty in finding a job when twice as many people are looking for a job than say 2 years ago. It may take a little longer . . .

    5 – that isn’t spin really, you’re taking the krugman quote out of context, but to follow your logic, I think krugman would admit that this isn’t the same as the new deal, so I guess that all balances out.

    6 – ok, so you say it was a combination of the two (in the other comments), but isn’t it safe to say that the war was in ways an expansion of new deal policies (ie the government hiring people, giving them jobs and income to spend)? Also, I agree, free trade is more efficient in the long run, but at the same time, encouraging consumption from American sources is more effective at stimulating the American economy.

    7 – well it’s your cash since you’ll have pay china back, and actually look at your last quote in the first post, cuz well, that’s where you assert it, or at least point to someone who is. And actually, contribution to planned parenthood would positively affect gdp, government spending is a component of gdp, so by definition it would have to, furthermore planned parenthood will spend the money either by purchasing goods or labor, and that money will cycle through the economy. Don’t let the fact that you don’t like what planned parenthood would do with the money blur your thinking on this, cuz that’s really a different argument. Personally I’d like the whole stimulus to go forming a professional dodgeball league for us all to compete in and enjoy, but I’m not saying that nothing else will stimulate the economy.

    And in closing, you need to keep reading more Milton Friedman if you think that free markets are keeping you truly free. It’s kind of ironic when you’ve earlier linked to an article stating that aggressive monetary policy got us out of the depression, not the new deal, not something later Friedman would agree with (early Friedman was onboard with Keynes early on, until he got all free markets can never do anything wrong on the world). I’m pretty sure the Univ. of Chicago economics department now hates you, but that’s something to be proud of in some circles.

  4. craig41,

    3- I have been a critic of Bush’s spending since his first term as president. I am distressed by the way Republicans have abandoned fiscal conservatism for political expediency. You are right, I think that “riding it out” would not be a good idea, especially if we are wanting to see an economic recovery anytime soon. There was a lot of waste during the Bush years, and frankly, whether it is a Republican or Democrat in the White House, I believe that it needs to stop.

    6- I will agree with you that wartime spending and job creation was an extension of some New Deal policies and planning. Good points here. I also believe that consumerism is the most powerful force we have in the US today, but I see this country facing a gradual decline, in which consumption will no longer be what it used to be. I think that going into serious debt, while promoting protectionism is a disaster waiting to happen.

    7- craig41, any form of job creation will affect GDP. But there is the question of whether or not this will truly benefit actual output, or simply measured GDP. Much of the focus of this bill does not directly deal with those areas in the economy with the most severe unemployment. It will take years to influence a shift into these other sectors.

    To be honest, I don’t have much of an opinion on Planned Parenthood itself, I just don’t see the kind of productivity coming from Planned Parenthood that I would like to see from other projects. And I don’t see a great pool of unemployed workers anxiously waiting for a break. On the other hand, I do see lots of construction and manufacturing laborers who would be useful and who desperately need a job.

    You are right about Friedman. There are many ideas from Friedman which I don’t think many Americans would find appealing. I am not an advocate of a completely laizze faire economic system, but I do, however, see a free market system as crucial to a “free society.” Indeed, I have my own battles with those on the free market side, but generally, I agree with them.

    Really, craig41, you have brought up a lot of good points (many in response to my previous post)… I am not attacking this plan out of pure partisanship as much as sincere doubt that the direction this stimulus takes seems all wrong to me. I hardly hold myself to the Republican party, but I do consider myself to be somewhat of a conservative… and if the Republicans are right on this (which I doubt because their argumentation seems more inspired by politics than true economic objections), then I will side with them.

  5. Having read this, I stand by my assertion that my argument comes from realities of economic principles and theory for which you can find backing in every major institution of economic thought. Your argument lacks that distinction, for the most part, and thus degrades the discussion beyond usefulness.

    Other than that, Marc, I would only recommend that you don’t personalize political disagreements.

    Also, I never linked to DailyKos. Only economists and those with clout in economic circles who’s judgement I’ve come to trust because, well, they’ve been right more often than not. :)

    Jakester, interesting question. I’ll have to do a bit of research before I can answer it effectively.

  6. Jakester, my only response is that there were multiple recessions/depressions in the 1800s. The government didn’t take an active role and there was not central banking. The nation came out of every one of those ‘crisis’ and grew stronger. As I said on the other thread, when you don’t know what the problem is you have very little chance of solving it.

  7. I have a question similar to Jakester’s. So let’s a normal recession lasts 6-12 months or so. IF this one is really bad, maybe it will be 6 months longer. By how long will this stimulus shorten the recession? 3-4 months? Is that result worth $1 trillon dollars? I’m skeptical.

  8. I compared the posts, and though I don’t agree with everything Jason says, he seems to get your points from your original comments summed up in a nutshell with his response, so I’m not sure why you are dodging them with this follow up post. I think a few of you have been so eager to oppose the stimulus you’ve bitten off more than you can chew, or argue against rationally.

    And another economist with a blog disagrees with you: http://feedproxy.google.com/~r/blogspot/bRuz/~3/EVVivfzr-IE/2009_02_01_archive.html

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