Skip to comments.Former Top Obama Adviser Christina Romer: A Weaker Dollar Is Good For America
Posted on 04/07/2011 1:17:56 PM PDT by SeekAndFind
Frustrated by "the suffering of real families," President Obama's former top economic adviser recently called for action: "If I have a complaint about policy these days, it's that we're not doing enough," Christina Romer said in a speech last month at Vanderbilt University. "I think there are tools we have tools we have that we can use, and I think it's shameful that we're not using them."
With unemployment still near 9% and the "real" unemployment rate at 15.7%, "we can't afford not to do more," Romer tells me in the accompanying video. "For heaven's sake with this many people unemployed think of what it's doing to government revenues and support payments. If all you're worried about is the budget deficit, it's really important" to put people back to work.
In terms of specific policies, Romer recommends a payroll tax holiday for corporations - rather than workers. Because "firms respond to incentives", making it less expensive would encourage them to do more hiring.
Romer also wants more action from the Fed to boost the economy and financial markets.
"What I'd like is for the Fed to come at the unemployment problem with the same passion as when the financial system was in such distress," she says.
It's a "mistake" for the Fed to end QE2 in June as planned, Romer continues. "The evidence is it's been very effective. I don't understand why we'd be dialing back that tool."
Despite the recent rise in Treasury rates, QE has been effective at lowering long-term rates, she says, citing academic research such as report from the NY Fed entitled: Large-Scale Asset Purchases Were Effective at Lowering Borrowing Rates.
Lower rates encourage corporations to make investments and individuals to borrow, "which tends to encourage spending which puts people back to work," Romer says.
(Excerpt) Read more at finance.yahoo.com ...
To Summarize what she said, Romer lauds QE1 and 2 for helping to weaken the dollar. A weaker dollar makes U.S. goods more competitive overseas, boosting exports and GDP growth, and ultimately hiring.
‘put people back to work’
“Progressives” are the craziest people. Small business upstarts are key to initiating growth. No one in their right mind would start a business with Obama & Co. in charge.
so we’ll pretend to work and they’ll pretend to pay us?
Yes folks, people really can be that stupid.
And remember two v dangerous things; they’re dim-bulb-crats, and they’re in government.
It’s like being a back seater in a fighter...with the Obamabutt flying.
Stealing from Bill Ayers again, I see...
Get your hands off my economy, you damned, dirty marxists!
Good for our lying, thieving federal government . . . horrible for the productive citizens of this country.
I just paid 2.58 per lb for freaking yellow and green roma tomatoes (covered with vegetable oil for some God only knows reason), I paid 4.58 per lb for hot house red tomatoes.
I couldn’t buy cucumbers of any kind because they were all sold out! The shelf was bare, not even a crap soft one was available for me to pick over.
$1.48 for a head of lettuce.
I have to eat these things for my health, I have no choice but to pay any price they demand.
I am getting fed up with how all this money printing is going to save us and we don’t have to worry about inflation, it is bunk.
I am planting my own vegetables, can’t wait till they come in. I need to learn how to produce vegetables in massive quantities for freezing like my Mother used to do.
What part the country do you live in?
You should participate on the FR ‘Garden Thread’...over 400 Freepers currently receive a ‘weekly ping’...the new one goes up every Friday morning. If you have ANY questions re: gardening or canning/preserving; it is the place to be...everyone from novice to mater gardeners dispensing advice. Just ask, and you can be added to the ‘list’...health reasons have turned many of us into gardeners...especially insulin resistance syndrome.
Northwest, if you have a farm, I will buy from you.
You should participate on the FR ‘Garden Thread’...over 400 Freepers currently receive a ‘weekly ping’...the new one goes up every Friday morning. If you have ANY questions re: gardening or canning/preserving; it is the place to be...everyone from novice to master gardeners dispensing advice. Just ask, and you can be added to the ‘list’...health reasons have turned many of us into gardeners...especially insulin resistance syndrome.
PLEASE ADD ME, I have to eat lots of veggies to keep healthy and I can’t afford the prices going up much further.
I need to start planting my own, could use as much of the free republic brain trust as possible.
I don’t but definitely planting this year come spring. Don’t buy those tasteless tomatoes, they have little to no nutritional value. Farmers markets are beginning to have produce, look for a local one. Summer is better time to find tomatoes and lettuce.
I need to get mine in, and worry the ground is too wet to plant anything yet.