1. Taggert J. Brooks, PhD
Associate Professor of Economics
University of Wisconsin-La Crosse
La Crosse Area Economic Forum

2. Disclaimer:
The views expressed today might be my
own, but they do not necessarily reflect
the views of my host, my employer, or my
parents.

4. Troubled
Asset
Relief
Program
Dynamic Government Intervention

6. Banks:
Solvency or
Liquidity Issues?

7. TARP:
$700 Billion of which
$384.6 Billion allocated

9. The Stimulus…
Obama’s Wager

10. Stimulus
Effectiveness
Size
Long Run Consequences

12. State Budgets
Spending Cuts and Furloughs…

13. New Furnace
Tax Credits offset Increased Costs

14. 4.0
High and Low Estimates of
ARRA impact on Real GDP
3.0
2.0
1.0
0.0
-1.0
2009 2011 2013 2015 2017 2019

15. 2.0
Real GDP Relative to Potential
0.0
-2.0
ARRA
-4.0
-6.0
Baseline
-8.0
2009 2011 2013 2015 2017 2019

16. Look, we enter the government essentially in
a hotel that is on fire. We’re throwing people
from the windows into the pool to save their
lives and this is the evaluation of the Olympic
diving committee: Well, the splash was too
big.

17. The Lost Decade

18. Long Term Consequences
Increase in publicly held debt.

19. 90.0 Obama
US Debt to GDP Ratio Budget
75.0
60.0
45.0 Baseline
CBO
30.0
15.0
0.0
1969 1979 1989 1999 2009 2019

20. 120.0 US Debt to GDP Ratio
Obama
100.0
Budget
80.0
60.0
40.0 Baseline
CBO
20.0
0.0
1940 1955 1970 1985 2000 2015

21. 0 50 100 150 200
Japan
Greece
Italy
Belgium
Portugal
Hungary
United Kingdom
Austria
France
Netherlands
Poland
Iceland
United States
Turkey
Germany
Sweden
Spain
Denmark
Finland
Korea
Canada
Ireland
Czech Republic
Slovak Republic
Mexico
Switzerland
New Zealand
Norway
Luxembourg
Australia
2008 Debt to GDP Ratio for OECD

22. “Either cuts in spending or increases in taxes
will be necessary to stabilize the fiscal
situation,”
“The Federal Reserve will not monetize the
debt.”

23. Inflation
Is not the worry. Overly aggressive
monetary policy is…

24. Long Term Fiscal Problems
Medicare and Social Security.

26. Green Shoots?