[URPE] Economists' Letter Re Stimulus Package

[Julie A. Matthaei]

----- Original Message -----

 

[
http://salsa.democracyinaction.org/dia/track.jsp?v=2&c=rotso%2FMZ3Wt7eZuUfSLaOwBhdTtvj4qZ
][Image]


---------------------------------------------------------------------------



Economists' Letter in Support of a New Stimulus Package

Economists are invited to [
http://salsa.democracyinaction.org/dia/track.jsp?v=2&c=90z3hjnv3krWhvLtkNVnDgBhdTtvj4qZ
]sign on to the letter below to urge Congress to move quickly and
decisively to pass an effective new economic stimulus package.

Please circulate this letter among your colleagues.  The closing date 
is Friday, November 14th.
__________________________________________________________

We, the undersigned economists, urge Congress to pass a new stimulus
package as quickly as possible.  The need to deal with financial turmoil
has directed attention away from the "real" economy.  But the latest data
clearly show that the economy is entering a serious recession, initiated
by the collapse of homebuilding and intensified by the paralysis of credit
markets.  Without a fast an effective response by government, the economy
could continue to spiral downward, leading to a large increase in
unemployment and a sharp decline in GDP.

The potential severity of the downturn suggests that a boost to demand on
the order of  2.0-3.0 percent of GDP ($300-$400 billion) would be
appropriate, with the goal being to get this money spent quickly.  The
list of targets includes:

a)Â Â Â  aid to state and local governments that are being forced to make
emergency cutbacks as revenues fall;
b)Â Â Â  extending unemployment insurance and increasing other benefits
targeted toward low and moderate income households who are likely to spend
quickly;
c)Â Â Â  moving forward infrastructure projects that have already been
planned and scheduled; and
d)Â Â Â  providing tax credits and other support for "green" projects that
can be done quickly, such as retrofitting homes and businesses for
increased energy efficiency.

The sharp falloff in demand resulting from the collapse of the housing
bubble and the destruction of financial wealth means that there is little
reason to fear that enlarged deficits will raise interest rates and deter
private investment.  It is far more likely that an effective stimulus
package will promote investment by improving prospects for higher sales
and profits.

With little downside risk and much potential gain, it is important that
Congress move quickly and decisively.  Delay can only deepen and prolong
the recession.

Sincerely,

Joseph E. Stiglitz, Nobel Laureate, Columbia University
Robert M. Solow, Nobel Laureate, Massachusetts Institute of Technology
Eileen Appelbaum, Director of the Center for Women and Work, Rutgers
University

Sign on here:
http://salsa.democracyinaction.org/o/967/petition.jsp?petition_KEY=1731

 

##




 



 



 


---------------------------------------------------------------------------

 

The Center for Economic and Policy Research is an independent, nonpartisan
think tank that was established to promote democratic debate on the most
important economic and social issues that affect people's lives. CEPR's
Advisory Board of Economists includes Nobel Laureate economists Robert
Solow and Joseph Stiglitz; Richard Freeman, Professor of Economics at
Harvard University; and Eileen Appelbaum, Professor and Director of the
Center for Women and Work at Rutgers University.

 


---------------------------------------------------------------------------

 

Center for Economic and Policy Research, 1611 Connecticut Ave, NW, Suite
400, Washington, DC 20009
Phone: (202) 293-5380, Fax: (202) 588-1356, Home: [
http://salsa.democracyinaction.org/dia/track.jsp?v=2&c=%2FgJq5EuJ35BdRDSsWJu0GABhdTtvj4qZ
]www.cepr.net

 

[
http://salsa.democracyinaction.org/dia/track.jsp?v=2&c=xooHtVRqk8RhRlZCeY5epwBhdTtvj4qZ
]Subscribe • [
http://salsa.democracyinaction.org/dia/track.jsp?v=2&c=Su6K%2BPxexvjPpjIckdkBVwBhdTtvj4qZ
]Unsubscribe • [
http://salsa.democracyinaction.org/dia/track.jsp?v=2&c=00M03vCJSOICEeEdu%2BC87ABhdTtvj4qZ
]Update Subscriptions • [
http://salsa.democracyinaction.org/dia/track.jsp?v=2&c=c2E6Js8XEm5zxPQCyrh3CwBhdTtvj4qZ
]RSS

 

[Image]

-------------- next part --------------
A non-text attachment was scrubbed...
Name: Attach0.html
Type: text/html
Size: 6782 bytes
Desc: not available
URL: <http://greenhouse.economics.utah.edu/pipermail/urpe-announcements/attachments/20081104/4d7db2da/attachment.txt>