The Economic Role of Government

As I tell my students, it is a legitimate and defensible position to argue that the government should not try to manage the macroeconomy. For a variety of reasons (such as corruption, incompetence, and the influence of special interests), it is conceivable that policy makers and implementers will make things worse, not better. If one chooses this position, however, then one cannot complain about high unemployment, high inflation, or a lack of economic growth.

Prior to the Great Depression, the predominant school of economic thought, classical economics, suggested that macroeconomic problems would correct themselves. If unemployment increased, the response would be a decrease in wages until employers were willing to hire them again. Similarly, inflation (a general increase in the level of prices) would cause people to buy less (as prices rose). Reduced demand for products then would cause prices to fall. The biggest problem with classical economic thought, however, is that it is based on assumptions that are rarely true. (For example, it assumes people have full information, which is almost never the case.) Several decades of subsequent economic thought have been devoted to explanations of flaws in the simplistic classical rationale. (The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded 42 times to 67 Laureates between 1969 and 2010 to highlight and honor those achievements.)

John Maynard Keynes, a British economist, popularized the notion that the government can and should play an active role in managing the macroeconomy. Keynes acknowledged that classical thought might have applicability over an extremely long time period, but “in the long run we are all dead.” If people wait for the macroeconomy to correct itself, they may not live long enough to see the changes. The severity and prolonged duration of the Great Depression convinced most people of the validity of Keynes’ insights. During the Great Depression, prices were falling, but that did not motivate an increase in purchases and employment as classical economics predicts. Even if people had income, they were reluctant to spend it because of uncertainty about the future.

Mainstream economics since the Great Depression is Keynesian economics. The overwhelming majority of economists around the world believe it is appropriate for the government to take actions to promote economic growth and to maintain low unemployment and low inflation. The debate in the United States is not whether the government should try to achieve these goals. Instead, the discussion is about what the government should do. Essentially, Republicans argue that public policies should primarily benefit businesses and the wealthy because they are the job creators. Democrats respond that making the wealthy richer will not cause them to hire more workers unless there is a significant increase in the demand for goods and services. Democrats favor policies with broader benefits because they believe increasing the overall demand for products will increase employment. Very few people argue that the government should do nothing to reduce unemployment, maintain stable prices, and promote economic growth. Indeed, the mood of the country is “they have not fixed the economy, so throw the bums out.”

If President Obama loses the 2012 election, it will be because he did too little to improve the economy, not because he did too much. Reports from the Congressional Budget Office (CBO), a government agency whose professional economists provide non-partisan analysis to legislators, consistently confirm that the American Recovery and Reinvestment Act (ARRA), the much criticized stimulus spending program, created jobs, increased employment, and reduced the unemployment rate from what would have occurred in its absence. It is a fair criticism to say some politicians steered ARRA funds away from the most economically beneficial projects toward other favored objectives. But that is a failure of the political system and the implementation of the suggested policies, not of Keynesian economic theory.

EMPLOYMENT SITUATION - July 2011

THE EMPLOYMENT SITUATION -- JULY 2011

Total nonfarm payroll employment rose by 117,000 in July, and the unemployment rate was little changed at 9.1 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in health care, retail trade, manufacturing, and mining. Government employment continued to trend down.

Household Survey Data

The number of unemployed persons (13.9 million) and the unemployment rate (9.1 percent) changed little in July. Since April, the unemployment rate has shown little definitive movement. The labor force, at 153.2 million, was little changed in July. (See table A-1.)

Among the major worker groups, the unemployment rates for adult men(9.0 percent), adult women (7.9 percent), teenagers (25.0 percent), whites (8.1 percent), blacks (15.9 percent), and Hispanics (11.3 percent) showed little or no change in July. The jobless rate for Asians was 7.7 percent, not seasonally adjusted. (See tables A-1, A-2, and A-3.)

The number of persons unemployed for less than 5 weeks declined by 387,000 in July, mostly offsetting an increase in the prior month. The number of long-term unemployed (those jobless for 27 weeks and over), at 6.2 million, changed little over the month and accounted for 44.4 percent of the unemployed. (See table A-12.)

The civilian labor force participation rate edged down in July to 63.9 percent, and the employment-population ratio was little changed at 58.1 percent. (See table A-1.)

The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) was about unchanged in July at 8.4 million. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job. (See table A-8.)

In July, 2.8 million persons were marginally attached to the labor force, little changed from a year earlier. (These data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey. (See table A-16.)

Among the marginally attached, there were 1.1 million discouraged workers in July, about the same as a year earlier. (These data are not seasonally adjusted.) Discouraged workers are persons not currently looking for work because they believe no jobs are available for them. The remaining 1.7 million persons marginally attached to the labor force in July had not searched for work in the 4 weeks preceding the survey for reasons such as school attendance or family responsibilities. (See table A-16.)

Establishment Survey Data

Total nonfarm payroll employment increased by 117,000 in July, following little growth over the prior 2 months. Total private employment rose by 154,000 over the month, reflecting job gains in several major industries, including health care, retail trade, manufacturing, and mining. Government employment continued to decline. (See table B-1.)

Health care employment grew by 31,000 in July. Ambulatory health care services and hospitals each added 14,000 jobs over the month. Over the past 12 months, health care employment has grown by 299,000.

Retail trade added 26,000 jobs in July. Employment in health and personal care stores rose by 9,000 over the month with small increases distributed among several other retail industries. Employment in retail trade has increased by 228,000 since a recent low in December 2009.

Manufacturing employment increased in July (+24,000); nearly all of the increase was in durable goods manufacturing. Within durable goods, the motor vehicles and parts industry had fewer seasonal layoffs than typical for July, contributing to a seasonally adjusted employment increase of 12,000. Manufacturing has added 289,000 jobs since its most recent trough in December 2009, and durable goods manufacturing added 327,000 jobs during this period.

In July, employment in mining rose by 9,000; virtually all of the gain (+8,000) occurred in support activities for mining. Employment in mining has increased by 140,000 since a recent low in October 2009.

Employment in professional and technical services continued to trend up in July (+18,000). This industry has added 246,000 jobs since a recent low in March 2010. Employment in temporary help services changed little over the month and has shown little movement on net so far this year.

Elsewhere in the private sector, employment in construction, transportation and warehousing, information, financial activities, and leisure and hospitality changed little over the month.

Government employment continued to trend down over the month

(-37,000). Employment in state government decreased by 23,000, almost entirely due to a partial shutdown of the Minnesota state government. Employment in local government continued to wane over the month.

The average workweek for all employees on private nonfarm payrolls was unchanged over the month at 34.3 hours. The manufacturing workweek and factory overtime for all employees also were unchanged at 40.3 hours and 3.1 hours, respectively. In July, the average workweek for production and nonsupervisory employees on private nonfarm payrolls was 33.6 hours for the sixth consecutive month. (See tables B-2 and B-7.)

In July, average hourly earnings for all employees on private nonfarm payrolls increased by 10 cents, or 0.4 percent, to $23.13. Over the past 12 months, average hourly earnings have increased by 2.3 percent. In July, average hourly earnings of private-sector production and nonsupervisory employees increased by 8 cents, or 0.4 percent, to $19.52. (See tables B-3 and B-8.)

The change in total nonfarm payroll employment for May was revised from +25,000 to +53,000, and the change for June was revised from +18,000 to +46,000.

_____________

The Employment Situation for August is scheduled to be released on Friday, September 2, 2011, at 8:30 a.m. (EDT).

U.S. Debt Clock

http://www.usdebtclock.org/

US Uncut: Corporate Tax Cheats Are Bankrupting America

Click the image above to enlarge it.

According to its website,

"US Uncut is a grassroots movement taking direct action against corporate tax cheats and unnecessary and unfair public service cuts across the U.S. Washington's proposed budget for the coming year sends a clear message: The wrath of budget cuts will fall upon the shoulders of hard-working Americans. That's unacceptable."

Republican cuts would cost 700,000 jobs

In the March 1, 2009 article "Republican cuts would cost 700,000 jobs: Report," Zachary Roth reports that Mark Zandi, a prominent economic forecaster, suggests that the budget cuts proposed by Republicans will slow economic growth and reduce the number of jobs. The logic is that a primary determinant of the number of jobs is the overall demand for newly produced goods and services, which economists refer to as aggregate demand (AD). And a key source of demand, especially in economic downturns and their recoveries, is government purchases. Less government spending translates into less aggregate demand and fewer jobs.

According to Roth:

A new report by a leading economic forecaster finds that budget cuts passed by the House of Representatives would cost 700,000 jobs over the next two years if enacted.

"The House Republicans' proposal would reduce 2011 real GDP growth by 0.5% and 2012 growth by 0.2%," according to the study, by Moody's Analytics chief economist Mark Zandi. "This would mean some 400,000 fewer jobs created by the end of 2011 and 700,000 fewer jobs by the end of 2012."

Zandi is no left-wing ideologue. He was on the economic team for Sen. John McCain's 2008 presidential campaign, and has advised members of both political parties. His findings point in the same direction as those of an even more pessimistic Goldman Sachs report, leaked last week, which concluded that the proposed cuts would reduce second- and third-quarter growth in 2010 by 1.5 to 2 percentage points.

Although the economy has been growing of late, it's not adding jobs fast enough to start significantly bringing down the unemployment rate, which stands at 9 percent. Writes Zandi: "Imposing additional government spending cuts before this has happened, as House Republicans want, would be taking an unnecessary chance with the recovery."

America already faces a jobs crisis, having lost around 8 million jobs since the start of the recession in late 2007.

Zandi argues that the government does need to cut spending--but that it should wait to do so until unemployment has come down further. "Significant government spending restraint is vital," he writes, "but given the economy's halting recovery, it would be counterproductive for that restraint to begin until the U.S. is creating enough jobs to lower the unemployment rate."

The House proposal cuts spending by around $60 billion from 2010 levels. The Senate and the Obama administration will weigh in before any cuts become law.

Charts reveal shocking income inequality

"Some new data crunches show how the gap between rich and poor has widened into a chasm."

In the February 23, 2011 Yahoo! article, "Separate but unequal: Charts show growing rich-poor gap," Zachary Roth summarizes the Mother Jones article," It's the Inequality, Stupid" that appears in its March/April 2011 issue:

The Great Recession and the slump that followed have triggered a jobs crisis that's been making headlines since before President Obama was in office, and that will likely be with us for years. But the American economy is also plagued by a less-noted, but just as serious, problem: Simply put, over the last 30 years, the gap between rich and poor has widened into a chasm.
Gradual developments like this don't typically lend themselves to news coverage. But Mother Jones magazine has crunched the data on inequality, and put together a group of stunning new charts. Taken together, they offer a dramatic visual illustration of who's doing well and who's doing badly in modern America.
Here are three samples:
• This chart shows that the poorest 90 percent of Americans make an average of $31,244 a year, while the top 1 percent make over $1.1 million:

• According to this chart, most income groups have barely grown richer since 1979. But the top 1 percent has seen its income nearly quadruple:

• And this chart suggests most Americans have little idea of just how unequal income distribution is. And that they'd like things to be divvied up a lot more equitably:

To see the rest of these fascinating charts, click on over to Mother Jones.

Winner Take All Politics: How Washington Made the Rich Richer – and Turned it s Back on the Middle Class.

Winner Take All Politics: How Washington Made the Rich Richer – and Turned it s Back on the Middle Class - by Jacob S. Hacker

From the publisher's website:

Description

A groundbreaking work that identifies the real culprit behind one of the great economic crimes of our time— the growing inequality of incomes between the vast majority of Americans and the richest of the rich.

We all know that the very rich have gotten a lot richer these past few decades while most Americans haven't. In fact, the exorbitantly paid have continued to thrive during the current economic crisis, even as the rest of Americans have continued to fall behind. Why do the "haveit- alls" have so much more? And how have they managed to restructure the economy to reap the lion's share of the gains and shift the costs of their new economic playground downward, tearing new holes in the safety net and saddling all of us with increased debt and risk? Lots of so-called experts claim to have solved this great mystery, but no one has really gotten to the bottom of it—until now.

In their lively and provocative Winner-Take-All Politics, renowned political scientists Jacob S. Hacker and Paul Pierson demonstrate convincingly that the usual suspects—foreign trade and financial globalization, technological changes in the workplace, increased education at the top—are largely innocent of the charges against them. Instead, they indict an unlikely suspect and take us on an entertaining tour of the mountain of evidence against the culprit. The guilty party is American politics. Runaway inequality and the present economic crisis reflect what government has done to aid the rich and what it has not done to safeguard the interests of the middle class. The winner-take-all economy is primarily a result of winner-take-all politics.

In an innovative historical departure, Hacker and Pierson trace the rise of the winner-take-all economy back to the late 1970s when, under a Democratic president and a Democratic Congress, a major transformation of American politics occurred. With big business and conservative ideologues organizing themselves to undo the regulations and progressive tax policies that had helped ensure a fair distribution of economic rewards, deregulation got under way, taxes were cut for the wealthiest, and business decisively defeated labor in Washington. And this transformation continued under Reagan and the Bushes as well as under Clinton, with both parties catering to the interests of those at the very top. Hacker and Pierson's gripping narration of the epic battles waged during President Obama's first two years in office reveals an unpleasant but catalyzing truth: winner-take-all politics, while under challenge, is still very much with us.

Winner-Take-All Politics—part revelatory history, part political analysis, part intellectual journey— shows how a political system that traditionally has been responsive to the interests of the middle class has been hijacked by the superrich. In doing so, it not only changes how we think about American politics, but also points the way to rebuilding a democracy that serves the interests of the many rather than just those of the wealthy few.

Infographic: Visualizing the National Debt

Infographic Source: National Debt LifesLittleMysteries.com

Click the image above to see it completely.

Give It Back for Jobs

The "Give It Back for Jobs" website (http://giveitbackforjobs.org/) encourages people to donate to charity the amount of money they will save by the extension of the Bush tax cuts for 2011 and 2012. According to the website:

Calculate, Pledge, and Donate Your Tax Cut

Americans who've benefited from the extension of the Bush tax cuts should give what they can afford - in large amounts or small - back to the public, by supporting organizations that promote fairness and economic growth.

The government has, by extending the cuts, deprived itself of the resources required to support the policies that will secure a vibrant middle class. But joint action by visitors to this site will begin to replicate good government policy, outside the government and free from the grip of obstructionists within it.

Beware of Politicians Who Do Not Understand Economics

The following quotation is attributed to Abraham Lincoln in the 1912 three-volume publication Industrial Development of Nations by George Boughton Curtiss. The story is also recounted in the book Free Trade, the Tariff and Reciprocity by Frank William Taussig.

“I do not know much about the tariff, but I know this much, when we buy manufactured goods abroad, we get the goods and the foreigner gets the money. When we buy manufactured goods at home, we get both the goods and the money.”

The quotation is a good example of a passage that sounds persuasive in a political speech, but has no merit when subjected to scrutiny and the application of basic economic principles. To see the fallacy of the protectionist sentiment, use the same logic on a personal level:

When I buy food and clothes from stores, I get the food and clothes and the store owners get the money. When I grow my own food and make my own clothes, I get the food and clothes and get to keep my money.

It is essentially an argument to never buy anything from anyone. But that is absurd. It ignores the economic concepts of specialization, trade, and opportunity cost. People and societies benefit when they devote their time and energy to goods and services they can produce at a relatively lower absolute or comparative cost than others. People then use the income from their specialized activities to purchase the things they are not able to produce as efficiently. Indeed, one of the primary sources of economic growth and prosperity is the willingness and ability to specialize and trade.

Modern politicians are equally guilty of populist appeals that lack economic credibility, such as claims that the primary source of economic growth is lower taxes and reduced regulation of business, or that tax cuts increase government revenues, or that significant reductions to the U.S. budget deficit and the U.S. public debt can be achieved without sacrifices in the form of higher taxes and reduced government benefits.

Bernanke's Monetary Policy: Why a Little Inflation is Good

In the November 12, 2010 TIME magazine article "Bernanke's Bum Rap: What's Wrong with a Little Inflation?," Michael Grunwald provides a defense for Fed Chairman Ben Bernanke's monetary policy.

Ben Bernanke teaches at Jacksonville University

Ben Bernanke, the Chairman of the Board of Governors of the Federal Reserve System, came to Jacksonville University on November 5, 2010 to be a guest lecturer in the Money and Banking course. He spent most of the time answering questions from students. The 45-minute video of the class is available from C-SPAN.

Norway has the highest quality of life.

According to a United Nations report, Norway has the highest quality of life in the world. Read more here.

According to the 2010 Human Development Reports, the world rankings are:

Human Development Index (HDI) - 2010 Rankings

Very High Human Development

Norway
Australia
New Zealand
United States
Ireland
Liechtenstein
Netherlands
Canada
Sweden
Germany
Japan
Korea (Republic of)
Switzerland
France
Israel
Finland
Iceland
Belgium
Denmark
Spain
Hong Kong, China (SAR)
Greece
Italy
Luxembourg
Austria
United Kingdom
Singapore
Czech Republic
Slovenia
Andorra
Slovakia
United Arab Emirates
Malta
Estonia
Cyprus
Hungary
Brunei Darussalam
Qatar
Bahrain
Portugal
Poland
Barbados

High Human Development

Bahamas
Lithuania
Chile
Argentina
Kuwait
Latvia
Montenegro
Romania
Croatia
Uruguay
Libyan Arab Jamahiriya
Panama
Saudi Arabia
Mexico
Malaysia
Bulgaria
Trinidad and Tobago
Serbia
Belarus
Costa Rica
Peru
Albania
Russian Federation
Kazakhstan
Azerbaijan
Bosnia and Herzegovina
Ukraine
Iran (Islamic Republic of)
The former Yugoslav Republic of Macedonia
Mauritius
Brazil
Georgia
Venezuela (Bolivarian Republic of)
Armenia
Ecuador
Belize
Colombia
Jamaica
Tunisia
Jordan
Turkey
Algeria
Tonga

Medium Human Development

Fiji
Turkmenistan
Dominican Republic
China
El Salvador
Sri Lanka
Thailand
Gabon
Suriname
Bolivia (Plurinational State of)
Paraguay
Philippines
Botswana
Moldova (Republic of)
Mongolia
Egypt
Uzbekistan
Micronesia (Federated States of)
Guyana
Namibia
Honduras
Maldives
Indonesia
Kyrgyzstan
South Africa
Syrian Arab Republic
Tajikistan
Viet Nam
Morocco
Nicaragua
Guatemala
Equatorial Guinea
Cape Verde
India
Timor-Leste
Swaziland
Lao People's Democratic Republic
Solomon Islands
Cambodia
Pakistan
Congo
São Tomé and Príncipe

Low Human Development

Kenya
Bangladesh
Ghana
Cameroon
Myanmar
Yemen
Benin
Madagascar
Mauritania
Papua New Guinea
Nepal
Togo
Comoros
Lesotho
Nigeria
Uganda
Senegal
Haiti
Angola
Djibouti
Tanzania (United Republic of)
Côte d'Ivoire
Zambia
Gambia
Rwanda
Malawi
Sudan
Afghanistan
Guinea
Ethiopia
Sierra Leone
Central African Republic
Mali
Burkina Faso
Liberia
Chad
Guinea-Bissau
Mozambique
Burundi
Niger
Congo (Democratic Republic of the)
Zimbabwe

Note: The HDI rankings featured above were published in the Human Development Report 2010, The Real Wealth of Nations: Pathways to Human Development. Information about the HDI. PDF version Table 1 - Human Development Index and its components [108 KB].

How Obama Saved Capitalism and Lost the Midterms

In the November 2, 2010 online New York Times commentary, "How Obama Saved Capitalism and Lost the Midterms," Timothy Egan explains that the partisan attacks on President Obama's handling of the U.S. economy are misguided and untrue.

Egan writes:

If I were one of the big corporate donors who bankrolled the Republican tide that carried into office more than 50 new Republicans in the House, I would be wary of what you just bought.

For no matter your view of President Obama, he effectively saved capitalism. And for that, he paid a terrible political price.

Suppose you had $100,000 to invest on the day Barack Obama was inaugurated. Why bet on a liberal Democrat? Here’s why: the presidency of George W. Bush produced the worst stock market decline of any president in history. The net worth of American households collapsed as Bush slipped away. And if you needed a loan to buy a house or stay in business, private sector borrowing was dead when he handed over power.

As of election day, Nov. 2, 2010, your $100,000 was worth about $177,000 if invested strictly in the NASDAQ average for the entirety of the Obama administration, and $148,000 if bet on the Standard & Poors 500 major companies. This works out to returns of 77 percent and 48 percent.

But markets, though forward-looking, are not considered accurate measurements of the economy, and the Great Recession skewed the Bush numbers. O.K. How about looking at the big financial institutions that keep the motors of capitalism running — banks and auto companies?

The banking system was resuscitated by $700 billion in bailouts started by Bush (a fact unknown by a majority of Americans), and finished by Obama, with help from the Federal Reserve. It worked. The government is expected to break even on a risky bet to stabilize the global free market system. Had Obama followed the populist instincts of many in his party, the underpinnings of big capitalism could have collapsed. He did this without nationalizing banks, as other Democrats had urged.

Saving the American auto industry, which has been a huge drag on Obama’s political capital, is a monumental achievement that few appreciate, unless you live in Michigan. After getting their taxpayer lifeline from Obama, both General Motors and Chrysler are now making money by making cars. New plants are even scheduled to open. More than 1 million jobs would have disappeared had the domestic auto sector been liquidated.

“An apology is due Barack Obama,” wrote The Economist, which had opposed the $86 billion auto bailout. As for Government Motors: after emerging from bankruptcy, it will go public with a new stock offering in just a few weeks, and the United States government, with its 60 percent share of common stock, stands to make a profit. Yes, an industry was saved, and the government will probably make money on the deal — one of Obama’s signature economic successes.

Interest rates are at record lows. Corporate profits are lighting up boardrooms; it is one of the best years for earnings in a decade.

All of the above is good for capitalism, and should end any serious-minded discussion about Obama the socialist. But more than anything, the fact that the president took on the structural flaws of a broken free enterprise system instead of focusing on things that the average voter could understand explains why his party was routed on Tuesday. Obama got on the wrong side of voter anxiety in a decade of diminished fortunes.

“We have done things that people don’t even know about,” Obama told Jon Stewart. Certainly. The three signature accomplishments of his first two years — a health care law that will make life easier for millions of people, financial reform that attempts to level the playing field with Wall Street, and the $814 billion stimulus package — have all been recast as big government blunders, rejected by the emerging majority.

But each of them, in its way, should strengthen the system. The health law will hold costs down, while giving millions the chance at getting care, according to the nonpartisan Congressional Budget Office. Financial reform seeks to prevent the kind of meltdown that caused the global economic collapse. And the stimulus, though it drastically raised the deficit, saved about 3 million jobs, again according to the CBO. It also gave a majority of taxpayers a one-time cut — even if 90 percent of Americans don’t know that, either.

Of course, nobody gets credit for preventing a plane crash. “It could have been much worse!” is not a rallying cry. And, more telling, despite a meager uptick in job growth this year, the unemployment rate rose from 7.6 percent in the month Obama took office to 9.6 today.

Billions of profits, windfalls in the stock market, a stable banking system — but no jobs.

Of course, the big money interests who benefited from Obama’s initiatives have shown no appreciation. Obama, as a senator, voted against the initial bailout of AIG, the reckless insurance giant. As president, he extended them treasury loans at a time when economists said he must — or risk further meltdown. Their response was to give themselves $165 million in executive bonuses, and funnel money to Republicans this year.

Money flows one way, to power, now held by the party that promises tax cuts and deregulation — which should please big business even more.

President Franklin Roosevelt also saved capitalism, in part by a bank “holiday” in 1933, at a time when the free enterprise system had failed. Unlike Obama, he was rewarded with midterm gains for his own party because a majority liked where he was taking the country. The bank holiday was incidental to a larger public works campaign.

Obama can recast himself as the consumer’s best friend, and welcome the animus of Wall Street. He should hector the companies sitting on piles of cash but not hiring new workers. For those who do hire, and create new jobs, he can offer tax incentives. He should finger the financial giants for refusing to clean up their own mess in the foreclosure crisis. He should point to the long overdue protections for credit card holders that came with reform.

And he should veto, veto, veto any bill that attempts to roll back some of the basic protections for people against the institutions that have so much control over their lives – insurance companies, Wall Street and big oil.

They will whine a fierce storm, the manipulators of great wealth. A war on business, they will claim. Not even close. Obama saved them, and the biggest cost was to him.

Show Me the Stimulus

Show Me the Stimulus provides links to news and commentary about the effects of federal government spending from the American Recovery and Reinvestment Act in the state of Maryland.

This nine-month Maryland Morning series is funded by The Joseph and Harvey Meyerhoff Family Charitable Funds, The Baltimore Community Foundation, Melnick-Newell and Associates, and Persels & Associates.