Martin Kenney
by Martin Kenney
Fri Dec 26th 2008 at 9:53am UTC

Crackpotism, Delusions, and Obama Stimulus

Rich has already written about how 1930s New Deal stimuli projects will not help this country prepare for the 21st century global economy. Bloomberg has an incredibly insightful article on the Obama stimulus package. In effect, all the funds that will be appropriated for infrastructure will go for fixing old roads and building new ones to open new open spaces to crackpot development. Whatever one believes about global warming, this is certainly environmentally irresponsible and a step in the wrong direction. Moreover, it will cost cities, which, as Rich, Ed Glaeser, and many others have shown, have subsidized suburban development in the past. Now, U.S. “leaders” want to give us another dollop of past solutions. Optimistically applying old solutions (like ever greater indebtedness) for a debt and insolvency crisis is definitionally “crackpot.”

Can Obama translate his vague promises of change into a real change of direction for this country? To those that responded to my posting about taxation decisions, thanks.

I hope you all have great holidays. Rest, have fun, and prepare to put your thinking caps on because next year will be the most important for the global economy since 1933. We need to be there with alternative solutions and open the space for debate. Otherwise, the economists with old failed theories, some of whom claim to understand the Great Depression, will continue to provide crackpot solutions… to be discussed in the next posting.

2 Responses to “Crackpotism, Delusions, and Obama Stimulus”

  1. Fred Says:

    The way I read the article is that the states are requesting stimulus funds to build a lot of new roads as well as fix existing problems with the highways. This is not YET the Obama proposal. I fear Congress will tend to go along with the state requests unless they receive some significant pushback from the Obama administration. Now is the time for citizens concerned with the impact of more of the same to propose specific alternatives and to support those specific state projects which would be helpful such as mass transit and bus only lanes.

  2. Walter Derzko Says:

    Canada and the US have to start thinking not just about the old infrastructure but the new cognistructure, a term I’ve coined for infrastructure that thinks

    see
    Top 10 smart technologies for Obama and Harper to consider for their infrastructure / cyberstructure / cognistructure program

    Walter Derzko
    Smart Economy
    Toronto