Economist Robert Shiller (co-creator of the Case-Shiller Home Price Index, an essential tool for investors and economists) has an interesting idea for stimulating the economy: Put a teacher’s aide in every classroom.
Why? As reported by the Wall Street Journal, "Not only would it employ millions, but it would be good for the children," who would benefit from "the extra attention of another person."
Shiller is regarded as one of the most important economists today. The Arthur M. Okun professor of economics at Yale University and professor of finance at the Yale School of Management, he forewarned about both the dot.com bust and the housing bubble. For years, he criticized the so-called efficient markets model of economics, which many today cite as a key driver of the policies that led to the financial crisis. He is also the author of many books, including, Irrational Exuberance in 2000, which warned that the peaking real estate and stock markets were in bubble territory.
Shiller is worried about today’s economy. He estimates that the likelihood of a double-dip recession is growing and that we are "teetering" on the brink of a dangerous deflationary spiral. What to do?
The immediate issue is jobs, Shiller says. His suggestion: The government should invest in teacher’s aides. One for every classroom in America.
Shiller’s dire warnings before the 2008 economic crash were dismissed by more mainstream economists. He was right; they were wrong. Is anyone listening now?