The economy: Days of open wallet

Barack Obama is promising a vast new public-works programme as his solution to America’s economic woes NO SOONER had the worst job losses in a generation been reported (on December 5th, a Friday), than Barack Obama stepped up his calls for an ambitious fiscal stimulus package, taking to the airwaves twice over the weekend to do it. Not only would his plan prop up the sinking economy, he said, but it would equip America with more productive and efficient infrastructure, aiding future growth. His remarks gathered infinitely more attention than those of the actual president, who confined himself to vague optimism and a hard-to-substantiate claim that the frozen financial system is starting to thaw. There seems no doubt that resistance from politicians and investors to a seriously big package is melting. The December 5th figures showed that America lost 533,000 jobs in November, the biggest monthly loss in absolute terms for 34 years, though at 0.4% of the workforce, it was a bit less ... (link)