Economists and Financial Analysts Suddenly See Need for Action--Any Action
Economists Agree Time Is of the Essence for Stimulus
By Steven Mufson and Lori Montgomery Washington Post Staff Writers Sunday, February 8, 2009; A01
With Congress moving closer to adopting a $820 billion stimulus package and the Obama administration poised to unveil a new bank bailout plan, economists say that the federal government is taking its biggest role in the economy in a generation.
States that once aspired to blaze trails independent from Washington are turning to it for money, banks and businesses that once decried regulation now are seeking federal capital, grants or tax cuts and individuals are looking for tax relief.
"This is a seismic shift in the role of government in our society," said Allen Sinai, chief global economist for Decision Economics. "Those who believe the government can be an effective, positive instrument for good will have another chance to try it," said Sinai, a political independent.
While economists remain divided on the role of government generally, an ov…