November 19, 2008

The Honorable Henry Reid The Honorable Nancy Pelosi Senate Majority Leader Speaker of the House Washington, DC 20510 Washington, DC 20515

The Honorable Mitch McConnell The Honorable John Boehner Senate Minority Leader House Minority Leader Washington, DC 20510 Washington, DC 20515

Dear Sen. Reid, Sen. McConnell, Speaker Pelosi, and Rep. Boehner:

We, the undersigned economists, urge Congress to pass a new stimulus package as quickly as possible. The need to deal with financial turmoil has directed attention away from the "real" economy. But the latest data clearly show that the economy is entering a serious , initiated by the collapse of homebuilding and intensified by the paralysis of credit markets. Without a fast an effective response by government, the economy could continue to spiral downward, leading to a large increase in and a sharp decline in GDP.

The potential severity of the downturn suggests that a boost to demand on the order of 2.0-3.0 percent of GDP ($300-$400 billion) would be appropriate, with the goal being to get this spent quickly. The list of targets includes:

a) aid to state and local governments that are being forced to make emergency cutbacks as revenues fall; b) extending unemployment insurance and increasing other benefits targeted toward low and moderate income households who are likely to spend quickly; c) moving forward infrastructure projects that have already been planned and scheduled; and d) providing tax credits and other support for "green" projects that can be done quickly, such as retrofitting homes and businesses for increased energy efficiency.

The sharp falloff in demand resulting from the collapse of the housing bubble and the destruction of financial wealth means that there is little to fear that enlarged deficits will raise interest rates and deter private investment. It is far more likely that an effective stimulus package will promote investment by improving prospects for higher sales and profits.

With little downside risk and much potential gain, it is important that Congress move quickly and decisively. Delay can only deepen and prolong the recession.

Sincerely,

Economists’ Letter to Congress November 19, 2008 Page 2 of 6

CALIFORNIA Carol Zabin, University of , Berkeley George Akerlof, Nobel Laureate , University of California, Berkeley COLORADO Sylvia A. Allegretto, University of California, Alexandra Bernasek, Colorado State University Berkeley Elissa Braunstein, Colorado State University Peter Berck, University of California, Berkeley P. Sai-wing Ho, University of Denver Clair Brown, University of California, Berkeley Scott Lazerus, Western State College of Colorado Susan Carter, University of California, Riverside Tom Mayer, University of Colorado Carol Chetkovich, Mills College Tracy Mott, University of Denver Mussaddeq Chowdhury, University of Redlands Anita Pena, Colorado State University Cecilia Conrad, Charles Revier, Colorado State University Richard Cornwall Steven Shulman, Colorado State University James Cypher, California State University, Fresno Rudiger von Arnim, University of Denver Paul A David, Richard Wobbekind, University of Colorado James Bradford DeLong, University of California, Yavuz Yasar, University of Denver Berkeley Michael Zimmerman, Colorado Public Utilities James Devine, Loyola Marymount University Commission Gary Dymski, University of California, Riverside Elena Foshay CONNECTICUT Deborah Garvey, Santa Clara University Jane D'Arista, Financial Markets Center Lisa Grobar, California State University, Long Catherine Forman, Quinnipiac University Beach Candace Howes, Connecticut College Greg Hunter, California State Polytechnic Miguel Ramirez, Trinity College University, Pomona Rasika Ranasinghe, Connecticut College Michael Intriligator, University of California, Los Angeles DISTRICT OF COLUMBIA Dorene Isenberg, University of Redlands Henry Aaron, Brookings Institution Sanford M. Jacoby, University of California, Los Dean Baker, Center for Economic and Policy Angeles Research Lori Kletzer, University of California, Santa Cruz Barbara R. Bergmann, American University Tom Larson, California State University, Los Charles Betsey, Howard University Angeles Josh Bivens, Economic Policy Institute David Levine, University of California, Berkeley Ron Blackwell, AFL-CIO Yan Liang, University of Redlands Rebecca Blank, Brookings Institution Victor Lippit, University of California, Riverside Gary Burtless, The Brookings Institution Diane Macunovich, University of Redlands Mary Lou Egan, Bendick and Egan Economic Mark Maier, Glendale College Consultants, Inc. Eric Nilsson, California State University, San Kai Filion, Economic Policy Institute Bernardino Jessica Gordon Nembhard, CEJJES Institute and Michael Perelman, California State University, National Economic Association Chico Heidi Hartmann, Institute for Women's Policy Steven Raphael, University of California, Berkeley Research Michael Reich, University of California, Berkeley Ariane Hegewisch, Institute for Women's Policy Lynda Rush, California State Polytechnic Research University, Pomona Harry Holzer, Georgetown University Harley Shaiken, University of California, Berkeley Helene Jorgensen, Center for Economic and Policy Todd Sorensen, University of California, Riverside Research Roger Sparks, Mills College Hank Leland, Service Employees International Frank Stricker, CSU Dominguez Hills and CA Union Faculty Union Marc Mealy, US ASEAN Business Council Myra Strober, Stanford University Lawrence Mishel, Economic Policy Institute Richard Sutch, University of California, Riverside Austin Nichols, Urban Institute Chris Tilly, University of California, Los Angeles Aaron Pacitti, American University Gavin Wright, Stanford University Andrew Reamer, The Brookings Institution

Organizations listed for identification purposes only. Economists’ Letter to Congress November 19, 2008 Page 3 of 6

John Schmitt, Center for Economic and Policy MASSACHUSETTS Research Frank Ackerman, Stockholm Environment Institute Heidi Shierholz, Economic Policy Institute and Tufts University Mark Weisbrot, Center for Economic and Policy Randy Albelda, University of Massachusetts Boston Research M. V. Lee Badgett, University of Massachusetts Howard Wial, The Brookings Institution Amherst Jim Campen, Americans for Fairness in Lending FLORIDA Jessica Carrick-Hagenbarth, University of Robert Burkhardt, University of Florida Massachusetts Amherst Carmen Diana Deere, University of Florida Arthur Casimir, Western New England College Carole Green, University of South Florida Karen Conway, University of New Hampshire Patrick Mason, Florida State University James Crotty, University of Massachusetts Amherst Charles Rock, Rollins College Anita Dancs, Western New England College David Danning, University of Massachusetts Boston GEORGIA , Massachusetts Institute of Tanweer Akram Technology Sarah Jacobson, Georgia State University Gerald Epstein, University of Massachusetts Amherst IOWA Colleen Fahy, Assumption College Peter Fisher, The Iowa Policy Project Ellen Frank, University of Massachusetts Boston Ismael Hossein-zadeh, Drake University Gerald Friedman, University of Massachusetts Amherst IDAHO Heidi Garrett-Peltier, University of Massachusetts Martin Orr, Boise State University Neva Goodwin, Tufts University Sergio Romero, Boise State University Carol E. Heim, University of Massachusetts Amherst James Heintz, University of Massachusetts Amherst ILLINOIS Adam Hersh, University of Massachusetts Ron Baiman, DePaul University Arjun Jayadev, University of Massachusetts Boston Marianne Ferber, University of Illinois at Urbana- J K Kapler, University of Massachusetts Boston Champaign Thomas Kochan, Massachusetts Institute of Mark Johnson, Chicago State University Technology Paul Lockrd, Black Hawk College Laurence Kotlikoff, Boston University Joseph Persky, University of Illinois at Chicago Supriya Lahiri, University of Massachusetts Lowell Samuel Rosenberg, Roosevelt University Charles Levenstein, University of Massachusetts Calvin Trapp, Roosevelt University Lowell Catherine Lynde, University of Massachusetts INDIANA Boston Charles Davis, Indiana University - Purdue Arthur MacEwan, University of Massachusetts University Indiana Boston Amitava Dutt, University of Notre Dame Julie Matthaei, Lawrence Marsh, University of Notre Dame Ellen Meara, Harvard Medical School Jaime Ros, University of Notre Dame Michael Meeropol, Western New England College Martin Wolfson, University of Notre Dame Fred Moseley, Mount Holyoke College Philip Moss, University of Massachusetts Lowell KANSAS Julie Nelson, University of Massachusetts Boston Jennifer Ball, Washburn University Laurie Nisonoff, Hampshire College Philip Mauceri, University of Northern Iowa Paul Osterman, Massachusetts Institute of Joshua Rosenbloom, University of Kansas Technology Karl Petrick, Western New England College KENTUCKY Karen R. Polenske, Massachusetts Institute of Malcolm Robinson, Thomas More College Technology James Ziliak, University of Kentucky Robert Pollin, University of Massachusetts Amherst Joseph Ricciardi, Babson College Helen Scharber, University of Massachusetts

Organizations listed for identification purposes only. Economists’ Letter to Congress November 19, 2008 Page 4 of 6

Juliet Schor, Boston College MISSOURI Mark Silverman, University of Massachusetts Erik Olsen, University of Missouri Kansas City Amherst Peter Skott, University of Massachusetts Amherst MISSISSIPPI Robert M. Solow, Nobel Laureate , Massachusetts Marianne Hill, Center for Policy Research Institute of Technology Peter Spiegler, University of Massachusetts Boston NORTH CAROLINA Joanne Spitz, University of Massachusetts Boston Charles Becker, Mary Stevenson, University of Massachusetts Victor Schoenbach, University of North Carolina at Boston Chapel Hill Peter Temin, Massachusetts Institute of Technology David Terkla, University of Massachusetts Boston NEW JERSEY Stanley Warner, Hampshire College Eileen Appelbaum, Rutgers University Christian Weller, University of Massachusetts Oliver Cooke, Richard Stockton College of New Boston Jersey Jeannette Wicks-Lim, University of Massachusetts Reza Ghorashi, Richard Stockton College of New Amherst Jersey Brenda Wyss, Wheaton College Deborah Figart, Richard Stockton College of New Ben Zipperer, University of Massachusetts Amherst Jersey Douglas Kruse, Rutgers University MARYLAND Melaku Lakew, Stockton State College Gar Alperovitz, University of Maryland Daniel Lawson, Drew University Jon Goldstein, GTBEconomics Ellen Mutari, Richard Stockton College of New Robert Lynch, Washington College Jersey Ralph Sonenshine, American University Michele Naples, The College of New Jersey Richard Wertheimer Cordelia Reimers, Hunter College, City University Evelyn Wright, International Resources Group of New York Yana Rodgers, Rutgers University MAINE Subarna Samanta, The College of New Jersey Susan Feiner, University of Southern Maine Bernard Smith, Drew University Barbara Fraumeni, Muskie School of Public Service, Paula Voos, Rutgers University University of Southern Maine Michael Hillard, University of Southern Maine NEVADA Bruce Roberts, University of Southern Maine S. Charusheela, Univeristy of Nevada, Las Vegas Bernard Malamud, University of Nevada, Las Vegas MICHIGAN David Arsen, Michigan State University NEW YORK Michael Belzer, Wayne State University Marcellus Andrews, Sheldon Danziger, University of Michigan Radhika Balakrishan, Marymount Manhattan David Doane, Oakland University College Karl D. Gregory, Oakland University Erol Balkan, Hamilton College Margaret Levenstein, University of Michigan Nesecan Balkan, Hamilton College Hannah McKinney, Kalamazoo College Peter Bell, State University of NY Sid Mittra, Oakland University Lourdes Beneria, Cornell University Kevin Murphy, Oakland University Howard Botwinick, SUNY Cortland Frank Thompson, University of Michigan Howard Chernick, Hunter College, City University John Tower, Oakland University of New York Jennifer Ward-Batts, Wayne State University Kimberly Christensen, Sarah Lawrence College Thomas Weisskopf, University of Michigan Paul Christensen, Hofstra University Gregory DeFreitas, Hofstra University MINNESOTA Thomas DelGiudice, SUNY, College at Old David Karjanen, University of Minnesota Westbury Pareena Lawrence, University of Minnesota, Morris Rosemary DeRiso, Hofstra University Ann Markusen, University of Minnesota Ranjit Dighe, SUNY Oswego

Organizations listed for identification purposes only. Economists’ Letter to Congress November 19, 2008 Page 5 of 6

Alan Dye, Barnard College Perry Singleton, Syracuse University Max Fraad Wolff, New School University Joseph E. Stiglitz, Nobel Laureate , Columbia Anthony Gabb, St. John's University University David Gabel, Queens College, City University of Sharon Szymanski, Empire State College/SUNY New York Alexander Thompson, Vassar College Chris Georges, Hamilton College Renee Toback Teresa Ghilarducci, The New School Robert W. Turner, Colgate University Ulla Grapard, Colgate University Dale Tussing, Syracuse University Christopher Gunn, Hobart and William Smith Leanne Ussher, Queens College, City University of Colleges New York Robert Guttmann, Hofstra University Don E. Waldman, Colgate University Doug Henwood, Left Business Observer William Waller, Hobart and William Smith Colleges Conrad Herold, Hofstra University Lucy Law Webster, Economists for Peace and David Howell, The New School Security Jerome Joffe, St. John's University David Weiman, Barnard College Brent Kramer, City University of New York Andrw Wyler-David, SUNY Purchase Laurence Krause, SUNY, College at Old Westbury June Zaccone, Hofstra University Rachel Kreier, Hofstra University Ajit Zacharias, Levy Institute of Bard Henry Levin, College Mark Levinson, UNITE HERE Jeff Madrick, New School University and Challenge OHIO Magazine Robin Bartlett, Denison University Shane Mage, Collier's Encyclopedia Rudy Fichtenbaum, Wright State University Thomas Masterson, Levy Economics Institute of Susan Helper, Case Western Reserve University Bard College Barbara Hopkins, Wright State University Roberto Mazzoleni, Hofstra University Ida Mirzaie, The Ohio State University Patrick A. McGuire, Hobart and William Smith Sirisha Naidu, Wright State University Colleges Paulette Olson, Wright State University Judith McKinney, Hobart and William Smith Edith Rasell, United Church of Christ Justice & Colleges Witness Ministries Perry Mehrling, Barnard College Jim Rebitzer, Case Western Reserve University Martin Melkonian, Hofstra University Jeffrey Stewart, University of Cincinnati Tom Michl, Colgate University William Milberg, New School for Social Research OREGON Fatemeh Moghadam, Hofstra University Patricia A. Atkinson, Portland State University Jamee Moudud, Sarah Lawrence College Alison Butler, Willamette University Michael Nuwer, State University of New York at Michael Fogarty, Portland State University Potsdam Marty Hart-Landsberg, Lewis and Clark College Jose Antonio Ocampo, Columbia University Mary King, Portland State University Pierre Ostiguy, Bard College Sheila Martin, Portland State University Dimitri B. Papadimitriou, Levy Economics Institute Alok Ray, Portland State University of Bard College Sarah Tinkler, Portland State University James Parrott, Institute Linda Wilcox Young, Southern Oregon University Michael Pendleton, Buffalo State College Helen Youngelson-Neal, Portland State University Marilyn Power, Sarah Lawrence College Paddy Quick, St. Francis College PENNSYLVANIA John Roche, St. John Fisher College Nina Banks, Bucknell University John Sarich, Cooper Union Chuck Barone, Dickinson College Ted Schmidt, SUNY College Buffalo Roger Bove, West Chester University (retired) Amy Schwartz, New York University Irene Buhalo, Janney Montgomery Scott LLC Bhaswati (Bonu) Sengupta, Hofstra University Brendan Cushing - Daniels, Gettysburg College Sumitra Shah, St. John's University Bob Drago, Penn State University Anwar Shaikh, New School for Social Research David Elesh, Temple University Myron Sharpe, M.E. Sharpe, Inc. Lonnie Golden, Penn State Abington

Organizations listed for identification purposes only. Economists’ Letter to Congress November 19, 2008 Page 6 of 6

William Holmes, Temple University WASHINGTON Benjamin Kohl, Temple University Peter Bohmer, The Evergreen State College Ebru Kongar, Dickinson College Jeff Chapman, Washington State Budget & Policy Peter Karl Kresl, Bucknell University (emeritus) Center Michael Moohr, Bucknell University Colin Danby, University of Washington, Bothell Mark Price, Keystone Research Center Peter Dorman, Evergreen State College Geoffrey Schneider, Bucknell University Robert Francis, Shoreline Community College Sanford Schram, Heather Grob, St. Martin's University Jean Shackelford, Bucknell University Douglas Orr, Eastern Washington University James Stewart, Penn State Greater Allegheny Timothy Payne, Shoreline Community College Ramya Vijaya, Richard Stockton College of New Diana Pearce, University of Washington Jersey Hector Saez, Washington State University John Zink, Franklin and Marshall College Marjolein van der Veen, Bellevue Community College RHODE ISLAND Barry Shelley, University of Massachusetts, Amherst WISCONSIN James Carpenter, Milwaukee Area Technical SOUTH CAROLINA College Drucilla Barker, University of South Carolina Martin David, University of Wisconsin-Madison (emeritus) TENNESSEE Laura Dresser, Center on Wisconsin Strategy, Green Ekadi, Meharry Medical College University of Wisconsin-Madison William Holahan, University of Wisconsin- TEXAS Milwaukee James Galbraith, Economists for Peace and Security Marc Levine, University of Wisconsin-Milwaukee Diana Strassmann, Rice University Cheryl Maranto, Marquette University Marcelo Milan, University of Wisconsin-Parkside UTAH Jack Norman, Institute for Wisconsin's Future Nursel Aydiner Avsar, University of Utah Andrew Reschovsky, University of Wisconsin- Gunseli Berik, University of Utah Madison Cihan Bilginsoy, University of Utah Michael Rosen, Milwaukee Area Technical College Gail Blattenberger, University of Utah Timothy Smeeding, Robert M. La Follette School of Codrina Rada von Arnim, University of Utah Public Affairs Stephen Reynolds, University of Utah James Rock, University of Utah WEST VIRGINIA Hande Togrul, University of Utah David Cormier, West Virginia University/ILSR Matias Vernengo, University of Utah Saranna Thornton, Hampden-Sydney College Norman Waitzman, University of Utah Anne Yeagle, University of Utah ABROAD Siobhan McGrath, University of Manchester, United VIRGINIA Kingdom John James, University of Virginia Alejandra Arroyo, UAM-I, Mexico Andrew Kohen, James Madison University Silvia Berger, FLACSO, Argentina Colin Cavell, University of Bahrain VERMONT Anthony D'Costa, Asia Research Centre, Jane Knodell, University of Vermont Copenhagen, Denmark Peter Hans Matthews, Middlebury College Togmid Dorjkhand, Ministry of , Mongolia Elaine McCrate, University of Vermont Robert Scott Gassler, Vesalius College, Belgium Robert Prasch, Middlebury College Alicia Giron, Instituto de Investigaciones Stephanie Seguino, University of Vermont Economicas UNAM, Mexico Jim Tober, Marlboro College Gustavo Indart, University of Toronto, Canada Robert Shelburne, United Nations Economic Commission for Europe

Organizations listed for identification purposes only.