Tags: Shiller | Public | Anger | Unemployment

Shiller: Public Anger on Unemployment Hurts Confidence

By    |   Thursday, 16 Sep 2010 08:30 AM

The economy needs another dose of government stimulus to prevent a dangerous downturn in confidence, says Yale University economist Robert Shiller.

“We need more government support for the economy,” he told CNBC.

“We’re in a weak and transitional state right now. We have had a sense of economic recovery for some time since 2009, and it’s fading. This is really the time for economic stimulus.”

That weakness is what’s putting us at the brink of a slide in confidence, Shiller says. “Public anger over widespread unemployment is building. That’s a problem because it helps undermine confidence.”

Shiller opposes continuing the Bush era tax cuts for the wealthiest Americans, but says that’s really not the central issue.

“The real issue is jobs, and we have to focus on creating jobs,” he said. “We haven’t been focused enough on the unemployment rate.”

The public is angry about joblessness, the housing meltdown and what it sees as bailouts to aid the rich, he says. “The anger is something you can’t quantify. There’s an underlying hesitance to spend and hire.”

Former Federal Reserve Chairman Alan Greenspan disagrees with Shiller over government stimulus. He says the government already has intervened too much in the economy and that cutting the deficit must be job one.

"I don't think we have time to wait," Greenspan told the Council on Foreign Relations. "Our choice is not between good and bad, it's between terrible and worse."

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The economy needs another dose of government stimulus to prevent a dangerous downturn in confidence, says Yale University economist Robert Shiller. We need more government support for the economy, he told CNBC. We re in a weak and transitional state right now. We have...
Shiller,Public,Anger,Unemployment
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2010-30-16
Thursday, 16 Sep 2010 08:30 AM
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