A Closer Look: Assistance Programs in the Wake of the Crisis

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Letter Writer:

Kyle Stiegert, professor of agricultural economics at the University of Wisconsin in Madison

Date Posted:

April 6, 2011

Letter:

Thank you for this excellent article on the "great recession." It cuts through quite a bit of mythology and lays out the facts in a clear and coherent way. The graphics and use of the Blinder and Zandi simulations provide a reasonable picture of the but-for world without intervention. Personally, I think that without U.S. assistance programs in place, the off-shore reverberations would have been far more reaching than the simulations suggest. Additionally, aggressive assistance in Europe and Asia was probably as valuable as the U.S. programs in helping to stave off global disasters that go beyond what the simulation can predict. Somehow in some way, the global political machinery gave way to common sense at a time that it absolutely had to.