Saturday, November 8, 2008

One Way To Face The Recession

Krugman notes what should be happening and that Obama has promised action. I have to say I got so sick of the R's in my little blue state at the far northwest corner of the country accusing the Democratic governor of overspending and planning new taxes that I wanted to throw up. Maybe not that, but something.
Anyway, here we go.
Right now, we’re seeing a sharp drop in state revenues, which is going to lead to big cutbacks in spending and tax increases at exactly the wrong time.
Obama mentioned aid to state and local governments in his press conference yesterday. Indeed. This is a very quick form of fiscal stimulus, because it’s not about starting new spending, it’s about sustaining current spending. It should be done immediately.
But what if Bush says no? Congress should pass the aid plan anyway, and Obama should promise to sign it as soon as the current tenant vacates the White House. That way states will know that the money is coming, and be able to budget accordingly.

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