Tuesday, February 10, 2009

Stimulus: A History of Folly

James Glassman in Commentary:
The truth is that we have learned almost nothing about the use of fiscal stimulus since the Great Depression, and it is a fatal conceit to assume that we can hurriedly construct a fiscal policy that will produce the prescribed results today. Economists seem to admit this fact by advocating what they prefer anyway, for political or ideological reasons.
Read the whole thing.

Unfortunately, a crisis of confidence in our economic institutions and our economy in general has only been compounded by a crisis of confidence in our newly-elected president and the rest of our political leadership because of their panicked approach: there's no time to spare to throw a trillion dollars at the problem.

The current "pork frenzy" shows our politicians, led by our new president, are "over-stimulated." That thought only adds to the depression.


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