Link here (audio) only*, hat tip Anglachel. Here's a snippet:
[T]he administration went down in public esteem when people realized that it was working for the banks and not for them. Why would they think this? that? Why would they go, and here's a quote, "from blaming Bush and Wall Street to blaming Obama and Wall Street"? Because plainly they could see what was in front of their faces.
Awesome speech from Jamie Galbraith (in Canada, naturellement); it's not on YouTube, so click through, and make sure you have FlashBlock turned off, or whitelist rabble.ca).
Hint: it’s not Republicans.
Social Security remains one of the greatest achievements of the Democratic Party since its creation 75 years ago. Although Republicans have historically fulminated against the program (Ronald Reagan once
onald Reagan">likenedRead more about Which Party Poses the Real Risk to Social Security’s Future?
Laurence Kotlikoff has been making waves by using "inter-generational accounting" and CBO and IMF data, to compute a fiscal gap of $202 Trillion in present value. He concludes that this gap shows that the US is "bankrupt" as of now. Evidently, publications like Bloomberg take this sort of thing seriously since they publish it. Read more about Kotlikoff's Folly and the IMF's Too
New Deal 2.0 (ND20) is, well, more New Dealish than other web sites, so instead of the usual conflict between deficit hawks and deficit doves, we might see at, say, the New York Times. Here things are shifted to the left, and we see a debate between the deficit doves and the deficit owls. The doves and owls have posted there for awhile without really engaging one another. But recently, the appointment of Jack Lew as OMB Director and the Statement/petition by Sir Harold Evans called “Stimulus Now,” has ended an uneasy truce between these groups. Paul Davidson, Sir Robert Skidelsky, and Jamie Galbraith replied to the Evans petition with a refusal to sign it and an explanation of the deficit owl position. At about the same time, there was an exchange at Paul Krugman's blog between deficit doves sharing Paul's position on the deficit and deficit owls, who don't agree with the deficit dove prescription of short-term deficits until we get a strong recovery and then a “pivot” to deficit reduction eventually resulting in a surplus when times get really good. The deficit owl prescription is to increase Government spending on programs directed toward the public purpose, until all excess productive capacity in the US economy is used, and then cut back on less valuable spending, or raise taxes as necessary to avoid inflation. Deficit owls also believe that there is no need to worry about deficits as long as Government spending hasn't helped to created enough aggregate demand to use excess productive capacity, and that thereafter, aggregate demand needs to be cut either by reducing spending, raising taxes or both, not in order to reach some arbitrary deficit or surplus number, but rather to achieve the specific goal of avoiding inflation. Now, at ND20, blog posts have begun to appear where deficit doves and owls have been exchanging points of view. Read more about Deficit Doves Vs. Deficit Owls at ND20
James K. Galbraith
Cross-posted from New Deal 2.0.
President Obama and his economic team face a daunting challenge: how to deliver economic growth they know can only come from deficit spending, while deferring into the future the "fiscal consolidation" which is being pressed on them by practically everyone, from Peter G. Peterson to Angela Merkel. Read more about Why the Fiscal Commission Does Not Serve the American People
James Galbraith, in a forward to Warren Mosler's forthcoming Seven Deadly Innocent Frauds, on how money really works. (Clue stick: Not in the way that the banksters, most financial [cough] journalists, the legacy parties, or the career "progressives," are telling you.*) Read more about "Money is a spreadsheet"
The President has reached his decision on Afghanistan, and given his speech. There’s nothing much that can be done about this military escalation issue right now. It may make you feel better to gripe, kvetch, and moan on the tubez about the Afghanistan policy, but there are two big events coming up in the next 48 hours that perhaps we can still impact. President Obama’s jobs summit, in honor of which I've blogged an infrastructure repair and building program of oh, around 19 million new jobs.
And the confirmation hearing to re-appoint Ben Bernanke as chairman of the Federal Reserve System, before the Senate Banking Committee.
Do you want to try and make a difference? Then NOW is the time to raise a mighty shout across the land. Read more about Throw Helicopter Ben under the bus
On deficit spending and the need for boldness in addressing our economic woes:
Jamie Galbraith responds to the question posed by the National Journal, "Is the deficit a threat to future recovery?"
James K. Galbraith, National Journal: No. The question is grossly misconceived. Right now and for the immediate future, the budget deficit is the only source of demand that can fuel a recovery. Our present problem is not that it is too big, but that it is too small. Far too small.
The Obama administration’s new economics advisory board would seem like a very good place to give progressive economists a voice. There are a number of excellent people whom Obama might not want to put in line positions but would be very much worth bringing in to offer well-informed alternative views. At the risk of insulting those I forgot to mention, I would think immediately of James Galbraith, Larry Mishel, Dean Baker, Jared Bernstein.