Recession

The current thinking, at least for the last 47 years, is that if the country is going into a recession, the government can mitigate the effects of the recession by putting money into the hands of consumers, who, hopefully, will spend it almost immediately.

Pump money into the economy, either by outright cash to folks, creating public works projects or extending unemployment benefits. The quicker the folks that receive the money spend it, the quicker the recession will be over.

Paul Krugman has a unique take on the economic/financial conditions in the country here. I think this paragraph is particularly appropriate:

Meanwhile, Congress and the Bush administration have reached agreement on a much-hyped stimulus package. But the package, while probably better than nothing, is unlikely to make a noticeable dent in the problem — in part because the insistence of the administration and Senate Republicans on blocking precisely the measures, such as expanded unemployment insurance and food stamps, that are most likely to be effective.

. . . .
In particular, now would be a good time to think about the possibility of going beyond tax cuts and rebate checks, and stimulating the economy with some much-needed public investment — say, in repairing the country’s crumbling infrastructure.

Perhaps, a new Dem administration in January 2009, will embrace Mr. Krugman’s ideas as a way to revitalize the economy. On the other hand, I hope this recession will be over by then.

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