A former vice chairman of the Federal Reserve tells us why we need less austerity and more stimulus.

Here’s a key takeaway:

“America’s infrastructure needs are so huge, and so painfully obvious, that it’s mind-boggling we’re not investing more. The U.S. government can now borrow for five years at about 0.75% and for 10 years at about 1.7%. Both rates are far below expected inflation, making real interest rates sharply negative. Yet legions of skilled construction workers remain unemployed while we drive our cars over pothole-laden roads and creaky bridges. Does this make sense?”

No, it doesn’t. And it sure doesn’t to my family back in New Jersey, many of them un- or under-employed because there’s no construction work.

This entry was posted on Tuesday, June 26th, 2012 at 7:43 pm and is filed under Politics, Thoughts. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.