Macroeconomics

First I read this short report that furthered my sad perspective that economists are generally perceived as as useful as weathermen.

Justin Wolfers, "On the Failure of Macroeconomists"

Then I saw the below quote by Niall Ferguson.

"The prevailing Davos pessimism had been brilliantly summed up by Niall Ferguson... He called what we are going through not a Great Depression but a "Great Repression." ..."Our leaders," he said, "are in a state of denial, turning to a 1936 book [Keynes' The General Theory of Employment, Interest and Money] to save us.""

Are ideologies to blame for the apparent lack of any objective advice to offer upon the matters of the day?

"Service Stimulus"

For the past week, I've been lamenting the possibility of a failed opportunity. I've been sad that community service has gotten little lip service in discussions of the stimulus package. What's not to like about:

- the temporarily unemployed using their extra time to tutor kids
- the small-town values of "neighbors helping neighbors"

These types of activities can prevent a national depression from influencing Americans into mental depressions. It would pain me to learn years from now that the extra hours of the unemployed are being spent alone in front of the television.

So I am excited by the below passage in the NYT. I hadn't ever heard of Prof. Goldsmith until 5 minutes ago, but he expresses just what I had been thinking. This NYT post assembled experts to find faults with the $900 billion stimulus package. The package has been passed by the House and looks on track for Senate confirmation and the president's signature before President's Day. Then, hopefully, we can follow the implementation on recovery.org.

Anyways, Prof. Goldsmith has the below to say on "Service Stimulus".

"The stimulus package seeks to address the current economic crisis of our country, but we must not overlook the need for a “service stimulus.” Indeed, the bill should explicitly address how to support and leverage the spirit of volunteerism that exists in America.

For volunteers to be effective, they need support services from community organizations. If we are going to add jobs for the purpose of economic stimulus, we should do it in a way that produces broad support for Americans in difficult circumstances by neighbors helping neighbors. Therefore, the stimulus bill should provide for significant increases in AmeriCorps members who can rapidly deploy to community organizations and support volunteerism.

More Americans are struggling this year, yet millions are reaching out in record numbers to offer food, care and compassion. As this stimulus package recognizes, there are many areas of need across our communities. But these can be drastically improved by collaboration. Tutors and mentors can help school children succeed, volunteers can support displaced families as they move from shelters to more permanent housing and community assistance centers can assist by providing volunteers to aid those encountering substance abuse and depression.

We must renew our dedication to service and leverage the true strength of America through citizen action. The limiting factor is not American goodwill but rather the process by which we engage, recruit, train and deploy willing volunteers. By actively engaging in our communities and mobilizing efforts to aid those in need, we can rebuild society."