Zandi: Unemployment headed to 10.5 percent
Moody’s Economy.com economist Mark Zandi likes the stimulus (via Fox News) but still thinks unemployment is headed higher. In his own words:
10.5 percent is a very reasonable expectation for the peak in unemployment, but I think it would be measurably higher if not for the stimulus package. The stimulus in my view is working. It’s just gotten overwhelmed by the magnitude of the economic crisis.
Which, of course, brings us to the idea of a second stimulus. Marc Ambinder gives the rundown:
1) Extend the first-time home buyer credit
2) Create a new credit for companies who hire
3) Extend jobless benefits in every state, or just particularly distressed states, or every state but even more in particularly distressed states.
4) Give tax refunds to struggling companies
5) Institute a payroll tax holiday
6) Pass another stimulus but call it something like “State Rescue Plan” and send most of the money to state governments