Keynesian: LEAKED: INTERNAL 2008 stimulus plan PDF for the Obama admin authored by Larry Summers

[swissaustrian]

Just stumbled upon this:
Sombody leaked all 57 pages of the INTERNAL 2008 stimulus plan for the Obama administration which was authored by uber-Keynesian and Goldman Sachs crony Larry Summers. Date: 12-15-2008. Here you can see what the central planners really thought about the state of the economy right after the collapse of the housing market. They knew how bad things were, they falsely thought they could change this.

Link to the PDF: http://s3.documentcloud.org/documents/285065/summers-12-15-08-memo.pdf

In short: They have been W-R-O-N-G. But it's a very interesting read

Sensitive & Confidential
EXECUTIVE SUMMARY OF ECONOMIC POLICY WORK
Economic Recovery Plan
• In the absence of fiscal stimulus the economy is projected to lose 3 to 4 million jobs in
2009. Together with the jobs we have already lost and population growth, we will be 7
million jobs short of full employment. The unemployment rate is projected to rise above
9 percent and not projected to start falling until 2011.
• We believe that $600 billion in stimulus over two years would create 2.5 million jobs
relative to what would happen in the absence of stimulus. However, this falls well short
of filling the job shortfall and would leave the unemployment rate at 8 percent two years
from now. This has convinced the economic team that a considerably larger package is
, justified.
• The core of the package being recommended - investments and targeted tax cuts for
energy, infrastructure, health, education, protecting the most vulnerable, and other
priorities - totals only about $225 billion over two years and nearly $300 billion when it
fully spends out. We do not believe it is feasible to design sensible proposals along these
lines that go much beyond this total size.
• As a result, it may be necessary to consider two other elements for your plan: state fiscal
relief and tax cuts for individuals and businesses. Although these are not as important to
your priorities and are not as effective as stimulus, it is impossible to achieve your
macroeconomic objectives without them.
• The memo outlines four alternative plan ranging from $550 billion to $890 billion with
the difference between them being the state fiscal relief and tax proposals.

 

[HOLLYWOOD]

USUAL SUSPECTS... Ivy League Keynesians

Larry Summers amazing these clowns are in control of the economic curriculum of these major universities. I watched ex-Vice Chairman of the FED, Alan S. Blinder, who's professor of economics and public affairs, Princeton University, give the same g spread out garbage, which is just a spin to sticking the debt across the country, on the people and protecting the fraud of the partners in crime, the financial sector.


Here's the C-SPAN link if need to waste an hour: http://www.c-spanvideo.org/program/303928-1

 

[Ireland4Liberty]

so roughly over 200k per job?

 

[Tim Calhoun]

Interesting that it says Greg Mankiw was skeptical of implementing stimulus in general.

 

[VoluntaryAmerican]

I couldn't help feel that it was as if little kids were playing with toys, or building some sort of lego land...

Extend Unemployment? Yeah just throw 29.5 at it!

Increase food stamps... sure, throw 11 at it!

Got some roads and bridges we need to repair... ehhh, 20 sounds good!

Stop Teacher Layoffs... 4 oughta do it.

They just throw an estimated # (money) at the problem and expect it to resolve itself.

The amount of arrogance it must take to spend 350 million peoples money which you stole from them, in the hopes to help them.

What is going on here?

 

[Tod]

The amount of arrogance it must take to spend 350 million peoples money which you stole from them, in the hopes to help them.

Hah! I may have to steal this!