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CNBC Erin Burnett's Interesting Thought

December 18, 2008 RSS Feed Print

I appeared yesterday morning on CNBC's Squawk on the Street with Erin Burnett, along with John Hilsenrath of the WSJ. Erin raised a real interesting point: With Ben Bernanke and the Fed going "all in" to bail out the economy, do we really need Obama's Amazing Fantastic Stimulating Stimulus? A few thoughts:

1) Before any of the stimulus spending really kicks in, the worst of the GDP shrinkage should be over. So we are already too late, in one sense. (And there are some mustard seeds out there like falling credit spreads and lower oil prices and falling mortgage rates.)

2) If you think that our current economic troubles presage a long period of weakness, we should focus our efforts on those policies that help long-term growth. That means not spending money on skating rinks or bike paths. But the electrical grid, as well road and bridges do need an upgrade -- OK then.

3) Pro-growth tax cuts that are deep, broad and permanent.

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Attn. Mr. Barack Obama, The President of The U.S.A.,
Dear Mr. President,
I wish to know when will this issue be finally resolved.
Looking forward to your flash e-mailing reply, I remain,
Yours Faithfully,
Branko Janičijević,
Belgrade, Serbia.

Branko Janičijević 6:38AM September 21, 2009

Obama is already including BROADBAND as a big part of infrastructure spending. Getting available AND affordable broadband to over 95% of the citizens will transform america, just as the interstate highways did in the 50's. This MUST include breaking the duopoly between cable and telecom carriers, both of whom think everyone should spend about $100/month for TV, internet and phone, when the actual cost of voice phone traffic is minimal. We invented the internet and are now at 15th place in penetration, way behind most first world countries, a direct result of eight years of hands-off FCC management.
As we build the world's best broadband network, we also fund STANDARDS development for an IT based medical records system. We can't wait for "the market" to design seven different, overlapping and often incompatible systems; we need a set of STANDARDS that the market can build against. As a senior, I find it incomprehensible that every doctor I need to visit has another paper form for my medical history; that information should be in a standard format on my personal memory stick that his computer could read instantly. And I could stop wondering what conditions or medications I might have forgotten to list.
For the blue color side of the economy, some true road and bridge rebuilding would be appropriate.
After eight years of NO VETO Bush I have no concerns with the stimulus carrying some excesses. If The Bush administration, including Greenspan, had done their job we wouldn't be in this mess.
RCG

RCharles of PA 1:34PM December 18, 2008

As Rahm Emmanuel said, one should never let a good crisis go to waste. THAT will be the main reason for Obama's stimulus - with all the super fat pork that will be loaded onto it. The so-called stimulus will be more of a "political stimulus" rather than an "economic stimulus." Even Obama's own pick, Christina Romer has written that the multiplier effect from govt spending is only abut 1/3 that of tax cuts.

I-Man of NV 12:53PM December 18, 2008

CNBC Erin Burnett's Interesting Thought

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