Wednesday, October 22, 2014
Inquirer Daily News

Does U.S. need more stimulus $?

Some brainy economists say Obama needs to pass another stimulus package or unemployment will wipe out gains from the financial recovery

Does U.S. need more stimulus $?

UPDATE: Sunday Inquirer column here. Obama said this weekend he's against a second stimulus, first needs time.

EARLIER: "The U.S. needs another stimulus package because President Barack Obama’s initial $787 billion plan hasn’t been implemented fast enough," markets scholar and Nobel laureate Robert Shiller of Yale tells Bloomberg LP here. New York University economist Nouriel Roubini, who takes credit for predicting the credit market blow-up, thinks "more spending is necessary to avoid stagnation like Japan’s in the 1990s."

"Obama may need to aim directly at reducing joblessness, said Mark Zandi, chief economist at Moody’s Economy.com in West Chester, Pennsylvania," in this story. Also in that article: "Among options: enhanced job training, tax credits for businesses that take on new employees or a temporary cut in payroll taxes.

"Hundreds of thousands of lost jobs in industries such as autos and construction haven’t been replaced with new ones, shrinking payrolls by 6.5 million since the recession began in 2007, Labor Department figures show. The June jobless rate reached 9.5 percent, the highest since 1983. 'We are going to have a huge pool of unemployed, second only to the Great Depression,' said Allen Sinai, chief economist at Decision Economics in New York...

"Obama tried to tackle prolonged joblessness in the $787 billion stimulus package Congress passed in February by lengthening and expanding aid to the unemployed. As many as 650,000 workers may exhaust even their extended benefits within three months...

"The U.S. traditionally hasn’t had to deal with long-term joblessness. During the last 30 years, Americans who were thrown out of work took an average 15.8 weeks to find new positions. In June, the average duration of unemployment was 24.5 weeks, the longest since records began in 1948. The number of people collecting unemployment benefits reached a record 6.88 million in the week ended June 27."

About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

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