Businesses needs customers and customers have to have work. Robert Reich, former Secretary of Labor in Clinton’s first term, says government has to prime the pump. His suggestion is a second stimulus package aimed at states and locales.  Local governments especially need the boost because many are laying off people and are raising taxes and fees at the same time. The raise in taxes isn’t popular and the lay-offs aren’t usually making local government more efficient because several offices in local government are understaffed to begin with.

The President hasn’t proposed anything to boost overall demand. Reich wrote that The President needs to get the second stimulus going and explain why.