Larry Summers article on the Obama stimulus plan

[DCBob]

Obama's Down Payment
A Stimulus Must Aim for Long-Term Results
By Lawrence Summers
Sunday, December 28, 2008; Page B07

When President-elect Barack Obama takes office, he will face what may well be the bleakest economic outlook since World War II. Economic forecasts have been revised significantly downward over the past several months; today, many experts believe that unemployment could reach 10 percent by the end of next year and our economy could fall $1 trillion short of its full capacity -- which translates into more than $12,000 in lost income for a family of four.

-snip-

Our president-elect understands both the peril and the promise of the situation and the importance of responding to changing conditions. That is why his economic team is crafting a broad proposal, the American Recovery and Reinvestment Plan, to support the jobs and incomes essential for recovery while also making a down payment on our nation's long-term financial health.

A key pillar of the Obama plan is job creation. In the face of deteriorating economic forecasts, Obama has revised his goal upward, to 3 million. For one thing, significantly fewer positions would be created in the absence of any recovery plan. Second, more than 80 percent of these 3 million jobs will be in the private sector, including emerging sectors such as environmental technology. This is a bold goal. But economists across the political spectrum recognize that it is far less risky to stand firmly against the forces propelling our economy downward than to be timid in the face of a mounting crisis.

The Obama plan represents not new public works but, rather, investments that will work for the American public. Investments to build the classrooms, laboratories and libraries our children need to meet 21st-century educational challenges. Investments to help reduce U.S. dependence on foreign oil by spurring renewable energy initiatives (many of which are on hold because of the credit crunch). Investments to put millions of Americans back to work rebuilding our roads, bridges and public transit systems. Investments to modernize our health-care system, which is necessary to improve care in the short term and key to driving down costs across the board.

more: http://www.washingtonpost.com/wp-dyn/content/article/2008/12/26/AR2008122601299.html
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I really like the idea of focus on environmental technology. Clearly there are great opportunities and multiple benefits and if things go well we could even have a green tech boom.

[The Doctor.]

1. K+R for hope.

I was talking to a good friend the other day. I've never been sure if our current mess was deliberately engineered, or truly a result of incompetence and greed.

He pointed out that if it really were engineered, then 'they' may well have failed as the American economy, based on the resourcefulness of the people, is just too robust. He also isn't sure whether this was by design, but is very confident we'll pull it out.

[DCBob]

3. "current mess was deliberately engineered, or truly a result of incompetence and greed."

Not sure if it's either one entirely. Clearly incompetence and greed played a part but seems to me the system just grew so huge and complex no one really understood all the parts and risks involved.

[Diamonique]

2. I love this. Obama's not being the least bit timid about this stimulus.

And it's so good to see a president concentrating on America for a change.

[The Doctor.]

4. Who thought we'd ever wind up with someone who'd do the RIGHT thing for a change?

Oh, it'll be great watching him bring us back from the brink. The funny part will be all the idiots claiming that "Bush's policies finally kicked in!" like they did last time.