Thursday, February 5, 2009
The Great Depression and today's economic crisis
This morning, on the Diane Rehm Show on UM-PR radio, I heard a very interesting discussion on similarities and differences between the Great Depression and today's crisis, as seen by Liaquat Ahamed, a professional investment manager and a former economist at The World Bank, and author of the following book (which I haven't read yet, but I will buy as soon as possible):
Liaquat Ahamed: Lords of Finance (Penguin)
How four bankers, titans of their time, sought to rebuild the shattered international financial system after World War One. A look at their initial success, the fateful decisions that put the world on the path of the Great Depression, and parallels to the financial crisis of today.
Two points he emphasized which I find compelling:
1. Roosevelt DID adopt the right policies to get the US out of the depression, policies that would have worked in the medium term even without the stimulus generated by the war. This of course means that Mr. Ahamed strongly supports the large stimulus package Obama wants to see adopted.
2. Second important point I wish to stress -- partially because many people disagree -- is that we need to work on an international strategy to address the current financial and economic mess, with the inevitable corollary that nations that are better off from a financial point of view (Germany, China) need to pass stimulus packages that can help other countries get out from under.
Daniela
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Here's a piece from CNN about Florida Republican Governor Charlie Crist, and his support of President Obama's stimulus plan. He needs to talk some sense to Republicans in Congress.
ReplyDeleteFlorida gov. to join Obama at stimulus town hall
Posted: 12:50 PM ET
From CNN Associate Political Editor Rebecca Sinderbrand
Gov. Charlie Crist was one of 19 governors, including four Republicans, to release a joint letter publicly urging Congress to to pass the president’s stimulus package.
WASHINGTON (CNN) – Republican Florida Gov. Charlie Crist will introduce President Obama tomorrow at a Florida town hall meeting plugging the stimulus plan.
Crist was one of 19 governors, including four Republicans, to release a joint letter publicly urging Congress to to pass the president’s stimulus package — a move that earned him an appreciative phone call from Obama.
The Florida governor has said he wants to help Obama push for the measure. The bill is currently being considered by the Senate after failing to draw GOP support in the House.
“Florida has taken prudent steps to cut taxes for our people and balance our budget in these increasingly difficult times,” Crist said in a statement released by the White House Monday. “Any attempts at federal stimulus must prioritize job creation and targeted tax relief for small business owners. I am eager to welcome President Obama to the Sunshine State as he continues to work hard to reignite the US economy.”
Tuesday’s event in Ft. Myers — the second of Obama’s stimulus town halls — will be held the same day the administration is slated to announce its economic recovery plan.
Filed under: Charlie Crist • President Obama • stimulus plan