That's the title of a post on the Progressive Review's blog, Undernews. Most intriguing are these suggestions for Obama's Treasury Secretary:
Wow! Two Nobel Prize winners, a Harvard professor who showed that most personal bankruptcies result from people trying to pay off their medical bills, the son of John Kenneth Galbraith, and the favorite economist of one of my favorite blogs . All would be a decided improvement over the current head of Treasury. Or Larry Summers.
Since the economy is the highest priority for Obama, he could do worse. Much worse, in fact. He could appoint someone who fears increasing the budget deficit. Or adheres to the Republican notion that raising taxes stifles economic growth*. Or argues against too MUCH regulation.
None of the progressive names listed above have such qualms, Krugman in particular. He argues that now is the time to spend, and the deficit be damned:
"But right now, increased government spending is just what the doctor ordered, and concerns about the budget deficit should be put on hold."
Closer to home, Chuck Sheketoff of the Oregon Center for Pubic Policy, argues that in this state where the economy is definitely taking a nosedive, officials shouldn't be hesitant to raise taxes** on the wealthiest Oregonians in order to ramp up public spending:
"...a 2001 study by two highly regarded economists -- Nobel Prize winner Joseph Stiglitz of Columbia University and Peter Orszag... ...concluded that during a recession, a better option than cuts to state services is a tax increase on the wealthy, who can cover the increases by reducing their savings rather than their spending."
Since Oregon, like most states is prohibited from running a budget deficit, the only two options in a down economy are to raise more revenue or cut state services. The latter, says Sheketoff, would be disastrous for Oregon's already ailing economy:
"Slashing state services inevitably reduces the flow of dollars through the economy. When the state retrenches, it cuts payments to businesses and nonprofits that provide direct services. It pares back programs such as the Oregon Health Plan that bring matching federal dollars into the Oregon economy. All this happens as demand for many public services increases because of the recession. In other words, slashing state services aggravates the problem."
Maybe Sheketoff's name should be added to the progressive list of possible Treasury appointees.
* (Larry Beinhart debunks the Republican supply side theory that tax cuts-are-good-for-the-economy with these historical facts.)
** (Sheketoff also argues for an increased corporate tax in a news release from OCPP. "That where the money is," says Sheketoff. Of course. I've been arguing that for years.)
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