The Depression: They Still Don't Get It

Here is James K. Galbraith, writing in Washington Monthly, on the need to face up to the magnitude of the economic mess we're in (No Return To Normal: Why the economic crisis, and its solution, are bigger than you think):

Barack Obama's presidency began in hope and goodwill, but its test will be its success or failure on the economics. Did the president and his team correctly diagnose the problem? Did they act with sufficient imagination and force? And did they prevail against the political obstacles-and not only that, but also against the procedures and the habits of thought to which official Washington is addicted?

The president has an economic program. But there is, so far, no clear statement of the thinking behind that program, and there may not be one, until the first report of the new Council of Economic Advisers appears next year. We therefore resort to what we know about the economists: the chair of the National Economic Council, Lawrence Summers; the CEA chair, Christina Romer; the budget director, Peter Orszag; and their titular head, Treasury Secretary Timothy Geithner. This is plainly a capable, close-knit group, acting with energy and commitment. Deficiencies of their program cannot, therefore, be blamed on incompetence. Rather, if deficiencies exist, they probably result from their shared background and creed-in short, from the limitations of their ideas.

Go. Read: Washington Monthly (March/April 2009).

See, also: "AIG. Was the Bailout From Hell a Mistake?" (Simon Gornick's There Is No Plan)
"Financial Policy Despair" (Paul Krugman, The New York Times)

Recovery: The New New Deal

Senator Bernie Sanders of Vermont proposes investing in infrastructure:

When the Senate reconvenes of November 17th, I intend to fight for an economic recovery program that is significant enough in size and scope to respond to the major economic crisis this country now faces. If we can commit more than $1 trillion to rescue bankers and insurance companies from their reckless and irresponsible behavior, we certainly should be investing in millions of good-paying jobs that rebuild our nation and improve its economy....

This economic recovery package should first improve our crumbling infrastructure by improving our roads, bridges and public transportation. We need to bring our water and sewer systems into the 21st century. We need to make certain that high-quality Internet service is available in every community in America. Not only are these investments desperately needed, every billion dollars that we put into these initiatives will create up to 47,000 new jobs.

The rest of the story: The Road to Economic Recovery by Sen. Bernie Sanders (Huffington Post, 2008-11-7)