Massachusetts Stimulus

Good morning. It's Friday Todd fiber here having also with me as time takes the weekend. And makes it long he'll be back gunman he just. Converted that thing right over which is not a bad idea especially this time hearing on a Florida. He didn't -- in part -- in the -- today stimulus would. Give state eleven billion dollars and then the first line is Massachusetts would receive at least six point five billion in federal aid. During the next two years and residents would receive nearly five billion more. In tax relief unemployment checks food stamps and other benefits under the economic stimulus bill passed this week by the US house. Now this puts it in a different respective delegates say well way is -- What do why again as good or.

How well boy is that seductive Wright who among us doesn't. Want that money especially hard times it's hard to single Kerry wants to make the package being here and you know there's a great quote later on in this article from US representative Ed Markey. Who is you know on the ultra liberal big government that never -- spending program he would like yeah. When he hailed the bill has quote a once in a generation opportunity to create a -- new jobs and invest in a vital priorities and position our economy for future growth. On quote. Why -- once in a joy to -- opportunity.

Because when else would you ever got the political will to do something as devastating as well as a matter of economics you -- doing manual but he's saying -- but I think that's an entirely accurate statement on why you're attacking him. Because. You -- were spending money we don't have. That's exactly what got -- that's why it's a once in our life I thank to help us sort this out in exactly what kind of benefits. What we can get in our pockets I want to billion Steve -- is here from the Boston Globe business section to talk to us about Steve good morning.

Good morning it's -- what about me quite.

Exactly right. The -- M. Last -- you know illustrate that the Democrats are smart they're really against talk radio all they have to do. Is slow and probably just a few 100000 dollars to people like guys we were joined OJ -- and we would immediately support this package.

Well if you have those cheap flight to Florida that helps still.

So Steve is this good news or Massachusetts.

What can I mean discuss a moving target obviously -- there was. After it was different before and by the time it gets out of the Senate the number is going to be different again and so is kind of a snapshot in time but. You know I guess it's -- to in the range of where I thought. It in total money that kind of showers down on us and our little else would be you know when you look at the individual numbers you see -- clearly. You know the single biggest beneficiary in terms of who gets to control money it turns out to be of course state government. Deep into Medicaid or throughout the state aid.

Which. It trickles down to individual. Residents dozen not.

If it does eventually and it's hard to tell exactly -- you know what state government. It can use. What's going to be about a 1000000003 -- plug. Various different all -- for a second I was almost totally up to their discretion. You know whether that's going to be used in ways that are are economically helpful or not. Maybe yes maybe no it seems a little bit.

But have you reached their conclusion on this I'm trying to get a handle on whether I should have a dual approach to the stimulus spine if I should be horrified by it -- The ridiculous bid of pork it is it's going to cause grotesque inflation over the next decade. That this is spending money we don't have to buy things we don't need to make political pastor Democrats. That's that's part one is part -- about hey this might work out well for me.

I don't know how well it's going to work out for us to say the -- It you know I think I've differed with you before and -- I think we do need to spend money and we do need to. -- do it right now whether we're doing it well I think I agree I'm not crazy about what went away a lot of the money's being spent and whether the scale is right or wrong. It it is certainly a lot of money you know how much is needed I don't think anybody knows.

Yeah let me ask you question. If this theory works and it you know hey beat of the ones according to Ed Markey that -- a generation opportunity to do this. Why do you here are salivating that was what a Democrat would do over the us -- why why are we being so stingy about it why only eleven billion for us why not throw in another ten or twenty billion dollars for Russia's the stimulus program likewise for everybody else -- the theory works. Then why not let's everybody get rich on it.

Well it it. -- I I guess I guess the let me alternatively it is your alternative to do Euro right now is that is that your idea or are I'm confused about what.

I -- zero. He likes that I think you're asking whether I think the government should be spending a ton of money it doesn't have. -- to do this or whether we should just let the account of the economy kind of go a long way and those. Entities that are going to fail are going to fail but that's the basic question right. And the problem is that we don't know at the end result is if I guess my. The only -- can look at is whenever we have tried this kind of program and the classic case was during the depression years it didn't work. The unemployment rate in the depression which was more than three times -- we have now did not come down substantially when this theory was applied in the thirties. So therefore. Mike and we're going to have economic hard times whether we like it or not the question is whether we're going to postpone and a little bit and make it worse. I don't know if you're leaving get as far as our children because eventually this kind of spending money you don't have to what you know get to.

Here postponing it what if you're you're -- the sharp edges I mean this is really what economic controls are about as you know they're going to be recessions on a cyclical basis. And you can have a a management team that that -- uses the tools of the Fed. Two. The blunt the sharp edges of those downturn so.

Yeah at this stage right now where it looks like losing about a million jobs a month is that is that dull edge.

Think this it is supreme irony here that he was because we we -- beyond our means and ran up enormous credit expenses along the way. That we got into this mess and now a proposal to get out of it. Is just keep the same behavior are the same except to do to larger extent in it reminds me very much abide by analogy. Of a drug you know you you take drugs. And and after awhile the drug the amount picture taking doesn't produce the -- take more likely take more and eventually of course what happens you'll end up with the medical disaster but but but for the moment that you took the increase -- you cellular and that's what we've done now I know what we have now is that the methadone program. They switch the drug but it isn't aliens which the drug we are infusing capital sending another program exactly the kitchen is more of the same.

So -- RB I -- I didn't hear the.

I don't I guess I would do we are going to have hard times Steve the -- of the question is I would take my chances. With. The economic situation going -- open the marketplace decide. I think we are going to get we're gonna end up -- medical option that probably no matter what -- we are going to go through some kind of to recessionary times no matter what the question is do we want to do it now. -- bad level or later after this kind of stimulus problem a stimulus package and worst level.

All right Steve let's hear your answered these knee jerk ha libertarian my knee -- and are you guys are deep liberal thinkers write it.

I do think that we need this stimulus I think that there is. Virtually no private spending there are radically lower private spending going on right now and use it as a sex before that. You'd need a customer in the economy right now and I think it stimulating the economy at some level has a real impact getting people. Creating business -- business it's it's this time is something that can. Start I was getting on some sort of -- recovery and I I agree we're talking about huge numbers of dollars here and I'm not saying that that that that. The number of dollars or right whether the way that we're spending it -- right generally I've been. Would you guys in terms or -- anyway -- in terms. Leaning toward tax cuts as opposed to government spending tons of money as a way to. Create demand for products and services.

Tax cuts or less effective. On a dollar for dollar basis but more immediate right and that's are you favor them because of the quickness.

I think they have a an immediate effect and you know I've said before that you know I -- I think the most the -- thing that you can do is to create. Tax incentives for people to go out and buy things whether it's a tax credit by a car or whether it's specific thing or not. And you know. -- policy was sent the Washington Post and actions in the barrel today as well. You -- talking about. That being a better alternative. Healing and how. That done that that -- which would argue that spending money as ineffective and therefore. Expensive in return to what -- getting -- I don't think the idea of spending bureau or or just sort of letting the economy fallen. Pick itself up at some disastrous leveled down in the pit is is the better right.

I watch you know since I got -- wrong with you before they -- I agree I think if you're gonna do any kind of program program at all. That attacks. The tax relief program -- cutting back on taxes is makes much more sense. Not only does it put it in the hands of the consumer. Who ultimately he's going to determine when we come out of recession because of psychology has to change but secondly and and the big advantage years. When you give it back to the consumer. He makes situations churches are made in the private sector by the marketplace. Instead of be sure she's being made by politicians. As to where the money's going to Goetschl I think. That plan which should move more toward the Republican side so the Democrats have some of it but not enough. I think that's a much better way to go then coming up at the issue among British. A government spending programs.

All right -- is -- somewhere these a knee -- libertarian like you I got a little bit of redemption with him thank thank thank thank his his trip though moderate Ireland's RT and -- Cyrus the Boston business report from the Boston Globe is.