Tuesday, December 02, 2008

Now's the time

To the many serious voices of the legitimate and mainstream Canadian media arguing that it's okay that the Conservatives don't plan to even announce new stimulus until the end of January, here's Paul Krugman on the need to go big and the need to go fast.

You've written that FDR was at times too cautious in his response to the Great Depression, and that by reducing spending and raising taxes in 1937 to appease deficit hawks he sent the economy into a severe recession. Do you think the next administration recognizes that they should err heavily on the side of too much stimulus?

I think they understand that they have to go big; what I don't know is whether they understand just how big big is. But they are being bombarded with concerns, not just from me but from a lot of people, and unlike the current administration they actually listen to experts. So I'm hopeful that they'll do the right thing.


Could a lack of action over the next two months ultimately prove fatal to our chances for a timely recovery?

Fatal I don't know. But these are two bad months to have policy comatose.

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