With the extreme amount of rampant fear out there, it’s a relief to find someone who can speak quite plainly about the impact of the bailout program.  Lawrence Mishel of the Economic Policy Institute gave a short and focused talk which is now out on Fora.tv.  It’s a well spent twenty minutes, covering how the bailout money was spent and what remains for 2010.  I highly recommend it for you next trip to the gym.  As a listener, the biggest relief was to hear someone speak intelligently on the impact of the bailout while focused on the humanity of the situation.  So, much journalism much of the journalism on the topic is lost in the shear magnitude of the mandates that they forget to focus on the impact they are having today.

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If time allows, I’ll come back with an unofficial transcript.  But, for the meantime, here are a few comments that stuck with me.

  • There is a real social calling here.  Leaders and individuals alike need to rally to find our way out of this situation.  If we fail, this will be one of the greatest failures of known human history.  
  • Areas of the United States that were in a recession while things were good are going to be in really bad shape as things get harder over the next few years.  There are many United State’s citizens that will not be in a position to afford basic care over the next few years.  We as people must be prepared to help provide financial relief.
  • We are way behind on jobs.  Presently, we are an estimated 9 million jobs short.
  • State governments have been a significant part of the bailout and will continue to be so.  If the federal government does not help them, they will in turn tax the people and business and will have a negative feedback loop, estimated at .5% of GDP.
  • The biggest portion of the bailout that remains unspent is the infrastructure and jobs portion, which was slated for 2010.  Expect government to be spending significant money on improvements with the intention to provide a place for some of the 9 million.
  • An estimated 30% or 60% (I apologize; I can’t recall) of US citizens today are afraid of significant salary reduction in the near future.  (By significant we are talking in a range of $7 – $12k.)
  • Keep in mind that as united as the states may be the impact of recession is NOT evenly spread.  African American’s make up significantly more of the unemployed.  The young as a whole are having the hardest time finding work.  Woman are doing better than men.  Etc.  (Warning: social unrest ahead.)
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