The New York Times is reporting that some at the Federal Reserve would like to see a new stimulus effort to avoid what they say could be a self-energizing spiral later this year.
As many Americans already feel themselves to be in a spiral such contemplations are behind the curve, but urgently necessary nonetheless. Why is the American government so slow on its feet? Neither public institutions nor the private Federal Reserve have been able to prevent a softening of the economy, nor been able to deal with the underlying weaknesses at the root of the new economic uncertainties.
It is long past time for the federal government, from the top down, to address the malaise with bona fide, proven policies, such as those used by Franklin Roosevelt in a similar time of uncertainty. The 2009 stimulus was clearly too small to affect long-term confidence, as prize-winning economists such as Paul Krugman have long said. I call for a new round of stimulus, plus a return to protective instruments such as the Glass-Steagall Act to shore up our economy and promote long-term health. The alternative is a new period of prolonged pain and even a new fiscal crash such as occurred in 2008. We do, in fact, need change we can believe in.
New York Times article on possible new economic stimulus effort at the Fed
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