Galbraith: Short-Term Stimulus Not Good Enough

Michael Stephens | October 26, 2011

James Galbraith, interviewed by Henry Blodget, suggests that more “stimulus,” if this means a program that will run out in a couple of years, is not sufficient.  What we need, he insists, is something more like a “strategic plan” for the next 10-15 years, investing in growth and dealing with problems like energy, climate change, and infrastructure (and that laying this groundwork would ultimately shore up private sector confidence).  Galbraith is also careful to distinguish between concerns about private and public debt:  while private, household debt has been a problem for the US, he argues, the public debt is sustainable and should not be a concern.  His closing line is worth repeating:  “We’re a big country.  We can finance our own reconstruction if we choose to do so.”

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  1. Comment by TylerOctober 27, 2011 at 10:11 am   Reply

    Galbraith is brilliant, but I wonder if he would support the elimination of the corporate income tax. That is a permanent measure which would instantly make America the most business-friendly nation in the world.

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