Week of March 30, 2009
News Item: President Barack Obama’s administration has drawn fire from left-leaning economists for continuing to bail out banks with hundreds of billions in taxpayer money. Some observe how this is a continuation of George W. Bush’s administrative policies. Many of these economists had been supportive of Obama’s bid for the presidency in the lead up to the November 2008 election. Paul Krugman, 2008 winner of the Nobel Prize in Economics; Joseph Stigletz, former World Bank Chief Economist; and Robert Reich, Secretary of Labor in the Clinton administration; among others, argue that greater spending on social programs and infrastructure will have a more positive influence on the economy in the long term than propping up banks destined for failure.
Contributed by James F. Tracy, Assoc. Professor, Communication and Multimedia Studies
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