Many argue that it was really World War II that got us out of the great depression of the 1930’s. Our vast increase in military spending is what reduced the 16.9% unemployment of 1936 to the 4.7% unemployment of 1942, they say.
So, Obama’s plan may not be up to snuff, may not be the fiscal equivalent of war. Paul Krugman is saying it’s only about one-third of what is needed. John Judis suggests an additional $70 billion in high-speed rail plus a new international monetary system.
Are these guys right? Or are our problems to be solved by tax breaks for the rich, Republican style? Me? I’ll take the former.
UPDATE: Obama in his press conference today said that if Paul Krugman is right, they’ll use his ideas, or at least evaluate them seriously. “No pride of authorship.”, said Obama.