Unemployment Numbers: The Long View

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1. what seems clear is that politicians simply can't bring themselves to make the deficit big enough.

recessions are readily addressed by running deficits (which need to be paid for in times of growth, but that's another problem).

the problem is that politicians seem to consistently, dramatically underestimate the size of the deficits needed.

and often-made criticism of fdr is that we didn't "really" get out of the depression until wwii -- which, from an economic perspective, was nothing but a gargantuan keynesian deficit spending spree.

but that's just the point. as much stimulus as fdr gave us, they in truth they needed far more to get us out of the mess of the republican presidents in the 1920s.


similarly for today. as much as people wail about the trillion dollar deficits, we've still got minimal growth and are bringing down the unemployment rate at a snail's pace. we would have been better off with an original stimulus package double or triple the size.

politically unachievable, i know, but the economist in me can enjoy a good whine every now and then....