By Steve Levy
E-mail Steve Levy
About this blog: I grew up in Los Angeles and moved to the area in 1963 when I started graduate school at Stanford. Nancy and I were married in 1977 and we lived for nearly 30 years in the Duveneck school area. Our children went to Paly. We moved ... (More)
About this blog: I grew up in Los Angeles and moved to the area in 1963 when I started graduate school at Stanford. Nancy and I were married in 1977 and we lived for nearly 30 years in the Duveneck school area. Our children went to Paly. We moved downtown in 2006 and enjoy being able to walk to activities. I do not drive and being downtown where I work and close to the CalTrain station and downtown amenities makes my life more independent. I have worked all my life as an economist focusing on the California economy. My work centers around two main activities. The first is helping regional planning agencies such as ABAG understand their long-term growth outlook. I do this for several regional planning agencies in northern, southern and central coast California. My other main activity is studying workforce trends and policy implications both as a professional and as a volunteer member of the NOVA (Silicon Valley) and state workforce boards. The title of the blog is Invest and Innovate and that is what I believe is the imperative for our local area, region, state and nation. That includes investing in people, in infrastructure and in making our communities great places to live and work. I served on the recent Palo Alto Infrastructure Commission. I also believe that our local and state economy benefits from being a welcoming community, which mostly we are a leader in, for people of all religions, sexual preferences and places of birth. (Hide)
View all posts from Steve Levy
Stimulus and the National Economy
Uploaded: May 19, 2012
A reader asked what I thought of stimulus efforts for the national economy.
The economy still suffers from a lack of sufficient demand to more fully employ unemployed workers. Consumers for good reasons do not have the resources or inclination to borrow to support much higher rates of growth in consumption. While business investment and exports are rising, construction and government spending are restraining growth.
The Euorpean experience in my opinion indicates the folly of short-term aggressive austerity measures and I expect European countries will move somewhat away from austerity and toward stimulus. As a personal anecdote we just came back from Greece. A friend who worked for the Greek airline had his pension cut in half as part of the recent austerity. Without passing judgment on what happened, it is still true that cutting incomes for many Greek families will push the eocnomy toward recession, which is happening across many countries in Europe.
The tone of recent posts in Town Square reflects the tone of national debate and lack of compromise in moving the economy forward.
We have twin goals of stimulating growth and long-term deficit reduction and our politics seems incapable of sensible solutions.
Any stimulus should be directed to long-term goals such as infrastructure investment, federal support for R&D and facilitating access to higher education--with possible support for states facing education layoffs.
We will face tough choices at year end in meeting deficit reduction goals as we remain gridlocked in DC.
What is it worth to you?
Post a comment
Sorry, but further commenting on this topic has been closed.