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Tuesday, February 9, 2010
 
 
RESEARCH   AREAS
 
AEI on the Economic Crisis and the Stimulus
 

When President Obama signed the American Recovery and Reinvestment Act on February 17, 2009, he said, "With a recovery package of this size comes a responsibility to assure every taxpayer that we are being careful with the money they work so hard to earn." AEI scholars have examined the structure of the stimulus package, and they have also followed its progress and promises. This section of the website gathers work done by scholars on the current economic problems, from its roots in the subprime mortgage crisis to the continuing debate over fiscal stimulus policies.

 
Feature: The Stimulus, A Year Later
Related Work

Last January, Kevin A. Hassett held a conference at AEI titled "Responding to the Recession." Hassett and others on AEI's economic team examined stimulus options before the congressional debate, warning of the perils of rushing a poorly designed stimulus package through Congress. The eye-popping $787 billion package that Congress passed and President Obama signed in February proved to be seriously flawed in ways that AEI scholars predicted. Michael Barone noted that about one-third of the funds were directed at state and local governments with the policy aim of maintaining public services and aid. But, as Barone notes, the political aim was to "maintain public-sector jobs--and the flow of union dues to the public employees unions that represent almost 40 percent of public-sector workers." And, as Alex Brill pointed out, many of the "shovel ready" projects still are not ready, tied up in red tape. Christina Hoff Sommers wrote that even though the vast majority of jobs lost in this recession were held by men, feminists hijacked the stimulus, getting the administration to direct funds toward female-dominated industries. Finally, in AEI's Education Stimulus Watch, Andrew Smarick wrote that the education stimulus funds are not being spent on reform. There are better ways to accelerate job creation than those in the legislation, a subject the AEI economic team will turn to this year.

Photo credit:iStockphoto/Andyd

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
Detour Ahead
 
The Great Recession of 2008-2009 differs fundamentally from the eleven postwar economic recessions that preceded it.
 
Public-Sector Unions Bleed Taxpayers
 
Private-sector union membership is declining, but union membership is still growing in the public sector.
 
Myths about Budget Deficits
 
Problems associated with a rapid buildup of deficits and debt should not be compounded by ill-advised, ad hoc policies.
 
Double Dip Risk Rises after Inventory Blowout
 
The inventory spike reported last week is one of many red flags in the U.S. economy that suggest the recession will have another dip.
 
 
Privatizing Fannie Mae, Freddie Mac, and the Federal Home Loan Banks Why and How
 
This book argues that privatization of the government-sponsored enterprises is the only viable way to protect the taxpayers and the economy.  
 
Serving Two Masters, Yet Out of Control Fannie Mae and Freddie Mac
 
Because two disparate clients demand loyalty from Fannie Mae and Freddie Mac, these government-sponsored entities must fulfill two ultimately irreconcilable roles.  
 
Nationalizing Mortgage Risk The Growth of Fannie Mae and Freddie Mac
 
Fannie Mae and Freddie Mac have aggressively used their government support to achieve extraordinarily high profitability and domination of the residential mortgage market.  
 
 
PAST EVENTS
 
 
At this luncheon press briefing, SFRC members will issue one or more statements and answer questions.
 
 
Where do we stand with respect to global imbalances? What are the remaining dangers and the lessons of the past year?
 
 
At this AEI event, experts will discuss the future of the CFPA bill in the House and Senate and whether it has the potential to effectively reform the financial system.