Austerity is all the rage in Washington these days. See President Obama's State of the Union address and the GOP's response. Seemed like a good time to chat with Brown University political science professor Mark Blyth, who suggests the austerity push is not as virtuous as it may sound. So I've got a Q&A with him in this week's Phoenix

Rhode Island's struggles with unemployment and homelessness continue to land in the national press. The latest account, on The Atlantic's web site, personalizes the issue with a look at a newly homeless young father:

Douglas Edward Coates is polite, soft spoken, and articulate. He looks like a typical 29-year-old professional in his black wool coat and wire-rimmed glasses, his sandy hair and goatee neatly cropped.

With Obama pressing his case, Politico details a counter-argument:

The language used to make the case for stimulus is stark and gloomy — and, by all measures, pretty accurate. But there is also a caveat attached to every solution proposed: that it simply might not work. Economists on the right and left say there is a chance, perhaps a decent one, that $1 trillion injected into a $14 trillion economy might be too little, too late to turn things around anytime soon.

Interesting factoid in today's NYT:

[T]axpayers are now the biggest shareholders in Bank of America, with about 6 percent of the stock, and in Citigroup, with 7.8 percent.

The story, about the possible nationalization of banks, goes on to note:

[C]leaning up the banks’ bad assets, without extracting a heavy price for the bank managers, shareholders and their lenders, is exactly what Mr.

It is timely and all.

From the Institute:

Tomorrow, over 200 Rhode Islanders, including local and state policymakers, representatives from nonprofit organizations, labor & religious groups, and Rhode Island citizens will attend the 2009 Budget Rhode Map.

The state budget is Rhode Island’s most important policy document, yet many Rhode Islanders are in the dark when it comes to how the budget is developed.

From Rasmussen Reports:

Most Americans Say Leaders Clueless On The Economy

Just 37% of Americans are even somewhat confident that their political leaders know what they’re doing as they try to address the nation’s economic problems.

Of this group, only four percent (4%) are Very Confident they know what they’re doing, according to a new Rasmussen Reports national telephone survey.

Elsewhere in blogland . . .

Matt, following up on Grow Smart RI and today's ProJo, faults Governor Carcieri for being late to the stimulus party . . .

And Justin crunches some numbers to conclude that the gov was correct, in response to my query on Newsmakers, in saying middle class Rhode Islanders have not assumed a greater part of the tax burden in recent years.

Governor Carcieri's special televised budget address last night struck me as a bit of a hodge-podge -- a mix of overdue concepts along with some others that leave continued questions.

As is his wont, the talk radio-friendly governor took his case directly to the public, communicating the seriousness of the situation, trying to frame it in a national context, and offering steps that might help to burnish his legacy.

To follow up on my last post, here are some of the recommendations from Lewis and David Einhorn on how to get past the current mess:

Stop making big regulatory decisions with long-term consequences based on their short-term effect on stock prices. Stock prices go up and down: let them. An absurd number of the official crises have been negotiated and resolved over weekends so that they may be presented as a fait accompli “before the Asian markets open.

One school of thought holds that poverty will always be with us. Perhaps, but that overlooks the fact that government, however flawed, can make an important difference for the better on important issues.

Two examples:

1) The federal government, through the Democratic administration of LBJ and the Republican one of Richard Nixon, dramatically diminished the prevalence of hunger in America.

From Governor Carcieri's office:

Governor Donald L. Carcieri will discuss the State of Rhode Island's financial situation and outline details of his FY 09 supplemental budget during a live, televised address on Wednesday, January 7, 2009. The address will be will air live on live on all three local network TV affiliates (WJAR NBC 10, WLNE ABC 6, and WPRI 12) at 7:00 p.

From NeighborWorks Blackstone River Valley:

What: Town Hall Meeting to create a community-based economic stimulus package

When: Tuesday December 30, 2008

Event begins at 6:00 pm

Where: Chaplin Perez Community Center, 37 Center St. Woonsocket, RI

Details: We all know that tough times are here.

I recap 2008 in this week's Phoenix:

For a good metaphor of the year experienced by Rhode Island in 2008, consider the economic-development summit called by Governor Carcieri in November.

On the surface, the notion of seeking fresh thinking about the Ocean State's deteriorating economy was eminently reasonable.

Some speculate that Saul Kaplan was asked to give up his job as executive director of the Rhode Island Economic Development Corporation. As we know, Governor Carcieri said via a statement that Kaplan plans to return to the private sector. At minimum, the timing is striking, given the state's very serious economic problems.

I wrote earlier this year about the long-stalled nature of economic development in RI. Now, with this news from the gov's office, the task at the EDC will belong to someone else. Kaplan demonstrated a good understanding of the big picture, and I wish him well.

Governor Donald L. Carcieri today accepted the resignation of Saul Kaplan, the Executive Director of the Rhode Island Economic Development Corporation.