Key Republican Rips Income Inequality, Calls For New Stimulus

[ashling]

http://www.huffingtonpost.com/2014/01/22/sheila-bair-stimulus_n_4646625.html?ncid=txtlnkushpmg00000037


WASHINGTON -- Former FDIC Chair Sheila Bair sharply criticized Congress for failing to approve economic stimulus measures, saying elected lawmakers who haven't repaired the economy "need to be held to account." Bair, an influential Republican, said more infrastructure spending by the federal government would provide a critical boost to the job market, and said Congress should approve additional spending, even if it requires borrowing money.

"Infrastructure spending's number one. I think we've squandered cheap financing rates for five years ... We haven't spent the money," Bair said during an interview on HuffPost Live on Wednesday. "Everybody wakes up in the morning, 'What's the Fed gonna do?' I don't like that. I want the pressure back on the elected leaders. They need to be held to account. They need to get the economy going."

***
"Look, on entitlement reform, I think you do need a long-term strategy. I'm not one of those people who say we can ignore that -- we can't. But it can be long-term. And if you get something out of this spending, you get something with long-term benefit -- which you will with infrastructure: You get infrastructure, which we desperately need. We need jobs, better job training ... This is low-hanging fruit."

*****

"I do think it's made income inequality a lot worse. It's inflated financial assets. I mean, they say that's the purpose, right, to get this wealth effect? But what is it? The top 10 percent of the population owns 80 percent of the stock," Bair said. "We need fiscal policy. And I know the Fed says, 'Well, Congress isn't going to do anything, so we need to do this.' But I think what they're doing at this point just continues to skew wealth towards the very wealthy. We need Congress, we need fiscal leadership."

[JaneyVee]

1. She's absolutely correct on infrastructure spending. This would greatly boost

The economy. Not only does it repair our crumbling infrastructure, but it's ripple effects throughout the economy would be huge. From steel plants and manufacturing, increased hiring, all the way down to the diners that serve the workers lunch. That is to say we buy US made products instead of material from overseas.

[northoftheborder]

2. Yes, and no subcontracting to China or others outside USA.

[JustAnotherGen]

4. +1000

It's got to be of the people and by the people when it happens.

At risk of sounding like a loony toony conspiracy theorist - the 'Republican Way' is to wait until it's too late and then turn around and tell us the only way we can do it affordably is if we give the contracts to foreign companies to bring in their employees to do it at slave wages. Unless we get to it first - they will have some song and dance and people will fall for it.

[WhiteTara]

3. It's true. Here in my state

we have over thousands of little bridges ready to fall down. Outside of LR, a train track lost a "pin" and now the train and river traffic is at a complete standstill and will be for at least a week.

[riversedge]

6. But austerity is the MO for most at the @GOP/#teaparty!

[WhiteTara]

8. I'm thinking of running in my state district

but it's a bit difficult decision because I may have to have hip/spine surgery. My heart is there, but my body is a wreck. I'll know my future in the next 2 weeks.

[Bandit]

7. No we need new aircraft carriers and bombs and drone attacks on women and children

I think we need to find a way to torture some more folks because it was so much fun the first time we did it. And you want some silly bridge...for shame...

[riversedge]

5. some Republicans are waking UP. Need lots more to do the same!

[Javaman]

9. Meh...

while she's correct, this only made headlines because she's a repuke. And not once in the article does it state that she called out any of the most vile offenders aka the repuke party of "NO" who have worked as willful obstructionists since Obama got in office.

So it's nice that she makes this statement but in reality, she knows what the problem is and doesn't have the guts to say it plainly.

because, you know that would cost her.

so making blanket statements about the obvious without naming names is now lauded as being something so wonderful.

[SunSeeker]

10. +1.

[Jack Rabbit]

14. If anyone wants to call out the villains, call out the Koch brothers

There is no Tea Party other than a mob of marionettes with the Kochs acting as puppet masters. The Kochs fund the loony candidates like Ted Cruz; the Kochs funded the reprobates who shouted down discussion of town hall meeting in the Summer of '09; it is the Kochs who fund ALEC legislation, the global-warming-is-a-hoax hoax and think tanks that have no brains like the Heritage Foundation.

Of course, calling out the Koch brothers would not be a good career move for people like Sheila Bair. It will continue to be a poor career move as long as taking money such low men born in high places isn't a worse one. It is up to The People to make that a poor choice by making receiving campaign cash from the Koch brothers a major issue.

It is long past time to separate politicians from the money the Kochs and other right wing billionaires and to separate right wing billionaires from the body politic.

[BlancheSplanchnik]

15. you just burst my bubble

You're correct, she's spreading the blame.

This isn't the time for CYA's and party loyalty.
I'm glad she said what she said, but i wish she'd say that PBO tried to do exactly what she's calling for and was forced to weaken the aid by austerity repukes.

Bet plenty of them pocketed what they got, too.
In the tiny rural NY town where i used to live, the repuke town councilman had a magnificent new town council building put up. This, on the one small mainstreet with SEVERAL old shut down businesses on it.

And he still hung out in the little barber shop with his cronies.

[Dark n Stormy Knight]

17. "I wish she'd say that PBO tried to do exactly what she's calling for and was forced to weaken t

the aid by austerity repukes."

Maybe she doesn't know that. She probably thinks PBO was too busy running around seizing people's guns to have time to propose any legislation.

[BlancheSplanchnik]

19. true.

I haven't googled her to see anything else about her.

[Dark n Stormy Knight]

20. Frankly, I'd never heard of her before. It was just a snarky comment about how just about every R

sees/portrays President Obama these days. I hope she's different, but I doubt it.

[BlancheSplanchnik]

21. yeah…I was gonna reflexively snark about her views on women's healthcare and all that…….

but I stopped, hoping that maybe I'm wrong and she's not that far right!

[polichick]

11. Bet that's going over well among the usual suspects.

[magical thyme]

12. it's called investment

as opposed to gambling on the stock market.

Real investment, where you put hard work, money, time, effort into building something fo actual value that pays back in terms of actual value.

[Adrahil]

13. We don't need more stimulus!

We need a fundamental change in how we invest in the future of our nation.

We need:

Direct contracts (or even direct employment) to rebuild roads and bridges
Greater investment in basic scientific research
MASSIVE investment in clean energy research and technology
DOUBLE the investment in NASA.... LET'S GO TO MARS!!!! (get the funds from cuts to DoD)
Investment in the arts
CANCEL free trade agreements.

[Jim Lane]

16. What you're calling for IS stimulus.

All the items on your list, except for the last one (cancel free trade agreements), would fall under the classic Keynesian remedy for a sluggish economy -- government spending to increase aggregate demand.

Of course, not all stimulus is created equal. The items on your list would generally have a more powerful stimulative effect, dollar-for-dollar, than would stimulus achieved through tax cuts. (The ARRA stimulus bill of early 2009 was not only too small but was also too heavily weighted toward tax cuts, a flaw that limited its impact.)

I don't know if your call for a fundamental change would be met by, for example, an extension of unemployment benefits. That kind of transfer payment to people who are struggling has a very high stimulative effect, because they spend almost all of it immediately. It doesn't have the "investment" aspect of things like infrastructure spending, though.

[Adrahil]

18. I'd say stimulus is viewed by most as temporary.

I don't want temporary. I want a long term commitment to the future of this nation.