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Tag: response

Have We Been Looking At Deficit Reduction The Wrong Way?

Jared Bernstein–formerly a top economic advisor to Vice President Joe Biden, and a key figure in the Obama Administration’s attempt to get the economy back on track–has published a fascinating response to Ezra Klein’s analysis of the administration’s response to the Great Recession.

Bernstein closes with a poignant critique of official Washington’s irrational, and destructive, fear of deficit spending:

“The main question we want to ask…is not ‘is the deficit getting too large’ but ‘is it large enough?’ As long as the economy is operating under capacity and the spending is temporary—think Recovery Act, not Bush tax cuts—to do too little in the name of deficits, bond vigilantes, and Treasury rates (which are now at historic lows), is to condemn millions to unnecessary unemployment, declining living standards, and even, in the case of the young, permanent scarring.

And, yes, for many in Congress it’s a tactic—they don’t care about the deficit other than its use a cudgel against doing something to help someone other than their funders. But as long as we fail to understand the dynamics of deficits—their need to expand as much as necessary in bad times and contract in good ones—we will never be able to meet the market failures we face now or in the future.”

According to Bernstein, we have been looking at our national debt in the wrong way. Although debt reduction has emerged as one of the most effective talking points in our political discourse–and as of June, 59 percent of Americans wanted the government to make debt reduction its primary concern, even if it meant slowing down the economic recovery–Bernstein suggests that we should be going in the exact opposite direction.

The divide between Bernstein’s opinion and the public’s will is just another clear example in a long list of signs that our most commonly used political talking points have little to do with economic reality.

Obama Visits FEMA Storm Center To Check On Hurricane

WASHINGTON (AP) — President Barack Obama visited the Federal Emergency Management Agency’s command center on Saturday as Hurricane Irene began making its way up the East Coast, and 6,500 American troops were told to be ready in case they are needed for relief work.

The center helps coordinate the government’s response to natural disasters such as this weekend’s hurricane, and the president offered encouragement to emergency management staff from across the federal government.

“Everybody here, you guys are doing a great job,” Obama told dozens of workers who were at their computer stations. The workers wore red or blue vests with their job descriptions on their backs.

Meanwhile, Defense Secretary Leon Panetta told 6,500 active duty troops to be prepared for a possible order for them to help with Hurricane Irene relief assistance. Panetta issued a prepare-to-deploy order for the troops from all branches of the military if support relief efforts are required, spokesman George Little said.

The request for the possible help came from states in the path of the storm.

Obama, accompanied by Homeland Security Secretary Janet Napolitano and his assistant for homeland security, John Brennan, said he was monitoring the situation closely. He thanked everyone for their efforts.

“”This is still obviously going to be a touch and go situation for a lot of communities, but knowing that they’ve got an outstanding response team like this will make all the difference in the world,” he said. “Especially because you all are not going to get any sleep for the next 72 hours or so.”

Earlier Saturday, Obama got a fresh update on the storm from his emergency management team.

He’s asking to be kept alerted to developments throughout the day and overnight as the storm makes it way up the Eastern Seaboard. He also spoke with federal and state agencies involved in the response by video teleconference.

Obama said that when he discussed the situation Friday with governors and mayors, he asked if they could think of anything else they needed. “There was quiet on the phone and that was a good sign,” the president said.