Tags: Shiller | Government | Create | Jobs

Shiller: Government Should Spend to Create Jobs

By    |   Friday, 06 Aug 2010 08:18 AM

The U.S. government should directly finance jobs in areas like education and health, says Yale economist Robert Shiller.

Some economists are opposed to the idea of more government spending at all, let alone the idea of direct spending on jobs.

Shiller disagrees. “There’s nothing wrong with the idea of fiscal stimulus itself,” he wrote in The New York Times.

“We need more stimulus, not less — but we need to focus much more on actually putting people to work.”

Unemployment, 9.5 percent in June, will remain a big problem, without government action, Shiller says.

“Why not use government policy to directly create jobs — labor-intensive service jobs in fields like education, public health and safety, urban infrastructure maintenance, youth programs, elder care, conservation, arts and letters, and scientific research?”

The current plan in Congress to triple the size of the AmeriCorps project isn’t enough, Shiller says. Under this plan, AmeriCorps would rise to 250,000 people in 2017.

“We ought to be bolder,” Shiller says.

Hiring a million people at $30,000 per person would cost $30 billion, only 0.2 percent of the national debt, he explains.

“Why don’t we just do it?”

Others think the focus should be on debt reduction. Moody’s Investors Service says that without progress on that score, the U.S. may someday lose its triple-A rating.

“This is what we’re going to be watching over the next couple of years,” Steven Hess, senior credit officer at Moody’s, told Bloomberg.


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The U.S. government should directly finance jobs in areas like education and health, says Yale economist Robert Shiller. Some economists are opposed to the idea of more government spending at all, let alone the idea of direct spending on jobs. Shiller disagrees. There s...
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2010-18-06
Friday, 06 Aug 2010 08:18 AM
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