Word: spend
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...succeed, Gates will need backing from Obama, along with a plan to spend defense dollars more smartly, during the recession. Despite the protestations of lawmakers, defense spending is an inefficient way to create jobs because the skills that defense jobs demand require premium paychecks. (Civilians working on missile defense for Boeing in Arizona earn three times the state average, the company boasts--great for them, but not so good for taxpayers or the unemployed.) Gates has sent the White House $10 billion in military projects to include in the stimulus package--barracks, hospitals, clinics, child-care centers--that can more...
...spend more than you make. Don't buy things you don't need. Save for a rainy day. If Americans had followed these simple rules over the past decade, there would be no financial crisis, no worst-since-the-1930s recession, no acrimonious Washington debate over what to do about...
This kind of behavior, contends McCulley, is what the paradox of thrift demands. "Uncle Sam has got to go the other direction and lever up his balance sheet and actually spend money," he says. Simply standing by and letting the downward economic spiral worsen strikes him as "inconsistent with a civilized society...
ASSETS In an effort to cleanse banks' balance sheets, the government will spend up to $1 trillion on a Public-Private Investment Fund that will provide private investors with incentives to acquire toxic assets...
...Treasury and Federal Reserve will jointly spend $50 billion to stem home foreclosures by reducing monthly payments and establishing modification guidelines for existing loans...