Saturday, March 07, 2009

Obama, Your Package Is Too Small

If you are a Keynesian, here's what you should put on your protest sign:

"Obama, Your Package Is Too Small."

"[T]he GDP gap will be as much as 12 percent of GDP, with no recovery in sight. This is shown in Figure One. This gap is compatible with unemployment rates near ten percent, indefinitely." -- James K. Galbraith

"The unemployment rate is likely to hit 8.5 percent by March and will almost certainly cross 9.0 percent by the early summer. Without substantial additional stimulus, it could cross 10.0 percent by year-end." -- Dean Baker

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