Benjamin Studebaker

Yet Another Attempt to Make the World a Better Place by Writing Things

Tag: Austerity

These Executive Orders Make No Sense

After weeks of failed negotiations between the House and the Senate, the President is attempting to provide additional stimulus through executive action. The orders are probably unconstitutional–all money bills must begin in the House of Representatives, per the “origination clause”. They will be challenged in the courts, and I doubt they come into force. That said, if the President had ordered a strong aid package, I would be willing to consider supporting a challenge to congress’ spending authority. Congress has neglected its duty to protect Americans from the economic consequences of our anti-coronavirus policies. The scale of the disaster is so immense that I would support trying anything that might help tens of millions of unemployed people stay in their homes and put food on the table. When wealthy senators sit on their hands and deny ordinary people the means of subsistence because they feel offering aid might diminish their “incentive” to take jobs that pay less than $600 a week, they get no sympathy from me.

Unfortunately, I don’t get to make a provocative argument that the President is justified in running over congress, because this President has taken action that doesn’t make any sense.

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On Coronavirus, We Don’t Want to End Up Like Europe

As the rich countries begin to release economic data for the second quarter, we can begin to form a clearer picture of where things stand. To date, it is undeniably the case that the crisis has been much worse for the European states than for the United States. This may change going forward, because the United States is still seeing its case load expand. But at present, the mainstream media narrative that the United States has uniquely mismanaged the crisis does not withstand scrutiny. The Europeans now face new long-term, existential threats to their social programs. They are much worse off.

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A Left Critique of the Current Protests

There are a number of problems with the strategy of the current protest movement. No one seems to be writing about these problems. This is not to say that no one can see them. Many folks have reservations, but stay silent in the hope that the protests will succeed. Others see the problems but fear that pointing them out will attract hostility from fanatics on the internet. The problem is that the strategy is not just sub-optimal–it is counterproductive. It is going to blow up in our faces, and the sooner we face up to that, the better. Here’s why.

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Coronavirus Is Coming for Education

I have a new piece out at The Bellows on the effects coronavirus is likely to have on the American public school system. You can read it here:

Coronavirus Is Coming for Education

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Why Federal Stimulus is Always Too Small

We never seem to learn anything. The global economic crisis of 2008 should have taught us a lot about how governments cope with major economic shocks, but the level of analysis in 2020 has been abysmal. The Great Recession reduced US economic output by 4.2% and destroyed 8.7 million jobs. To counteract the loses, the federal government injected stimulus, first through the Bush administration’s Troubled Asset Relief Program (TARP), and then through the Obama administration’s American Recovery and Reinvestment Act. Combined, these two programs provided about $1.2 trillion. That’s about $285 billion per percentage of point of GDP. It wasn’t enough. The economy recovered very slowly, too slowly for the Obama administration to maintain public support. The Democrats lost the House decisively in 2010. Obama tried to get an additional $447 billion in 2011, but the Republicans had no interest in it. Instead, they pushed for deficit reduction. Obama tried to play nice with them, signing the Budget Control Act in August and making one last push for more stimulus in the Fall. They took his cookies. The second stimulus never happened. As the years went by, rural America continued to lose jobs, and grew more and more resentful, setting the stage for Donald Trump in 2016.

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