Towns, Counties Create Own Stimulus Plans

...And Republicans kept demanding that it step aside and allow it

(NEWSER) - The economy isn’t in great shape, but we’re going to avoid Great Depression II, writes Paul Krugman in the New York Times. “What saved us? The answer, basically, is big government.” Unlike the private sector, the government didn’t decrease spending as its income decreased, which kept a whole lot of people employed. “Budget deficits are actually a good thing right now,” he writes. More»

How to stimulate the economy without draining your account

(NEWSER) - While leaders encourage Americans to stimulate the economy by spending, those who have lost jobs or investments are a lot more inclined to hoard their remaining assets. But there's a way to avoid this "paradox of thrift," in which the frugal behavior that's best for an individual ends up hurting the economy at large. In the New York Times, David Leonhardt explains: More»

(NEWSER) - Just days ago, President Obama said it was time for “tough choices,” but Obama himself hasn’t made the tough choices on his stimulus package, Robert Samuelson writes in the Washington Post. Obama could have opted to bolster the economy, or he could have tried to pursue a political agenda; instead, he’s done both, in a move that’s “politically shrewd and economically suspect.” More»

62% trust feds less than a year ago; 65% think US is on wrong track

(NEWSER) - 2008 wasn’t a great year for the federal government’s reputation, with a Politico poll finding that 62% of Americans say their confidence in Washington has decreased in the past year. The main worry is the economy: 45% say that economic stimulus should be the highest priority (no other issue gets more than 16%). More»

Government must remain involved for economy to gain new footing

(NEWSER) - The Obama administration must resist the temptation to leave the economy to its own devices too soon, Paul Krugman writes in the New York Times. “Getting to the point where our economy can thrive without fiscal support may be a difficult, drawn-out process,” he writes, with no bubble in sight to replace housing. “Things can’t just go back to the way they were.” More»