Don't like the economy? Do something!

Solving fiscal problems requires individuals to take responsibility and make sacrifices

Next week I?m headed over the UK where I?ll be meeting with folks from the Resolution Foundation, a smart and innovative British think tank working on many of the same issues you see on these pages.? Here, for example, is a piece they?ve just put out.

Skip to next paragraph Jared Bernstein

?

Before joining the Center on Budget and Policy Priorities as a senior fellow, Jared was chief economist to Vice President Joseph Biden and executive director of the White House Task Force on the Middle Class. He is a contributor to MSNBC and CNBC and has written numerous books, including 'Crunch: Why Do I Feel So Squeezed?'

Recent posts

It?s a discussion about some of the economic challenges facing low and middle-income families in the UK, including stagnating real earnings, high household debt levels, and the likelihood that some supportive policies?earnings credits and minimum wage increases?are losing ground.

But the part I found particularly compelling is the policy discussion?the search for ?gritty steps for improving household finances.??

What I see when I look at today?s economic policy debate is a lot of people sitting on their hands.? Here in the US, only the most stalwart souls?more on this in my next blog?are thinking about fiscal actions to create jobs.? Most have given up on the short term and the rest are scrumming around with the supercommittee, that leftover vestige from the great debt ceiling debacle. ?Fannie and Freddie are doing a little (on refis and REO to rentals), but could be doing much more.?

In Europe, central bankers at the ECB who could, with aggressive action, provide the necessary credit backstop to the banking system, are refusing to play the lender of last resort role that is the raison d??tre of central banks in moments exactly like this one.

In a way, Keynes? fundamental insight was: Do Something!? The ?General Theory? outlines in academic detail the rationale and conditions under which such interventions should occur, as well as the type of things we?d want to do?stimulate demand through tempoary deficit spending?but the core message is that when the market fails like this, sitting on hands doesn?t do anything but squander resources?potential growth is lost forever and, especially when the slog lasts this long, lifelong careers can be negatively altered.

So there you have it: Keynesianism and the policy roadmap forward in two words: Do Something!

The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here. To add or view a comment on a guest blog, please go to the blogger's own site by clicking on jaredbernsteinblog.com.

Source: http://rss.csmonitor.com/~r/feeds/csm/~3/C2FiSNDqfug/Don-t-like-the-economy-Do-something

andy rooney groupon ipo groupon ipo breeders cup 2011 gwar gwar san diego weather