Economists from all around the world agree that it is critically important to invest in programs that help our economy. Even the ultra-conservative Martin Feldstein, who served as Ronald Reagan’s Chairman of the Council of Economic Advisors and as a principal economic advisor to John McCain, has said: “Another round of one-time tax rebates won’t do the job … The only way to prevent a deepening recession will be a temporary program of increased government spending.”
Problem is that while Feldstein did support the idea of a generic stimulus, he does not support Obama’s Trillion Dollar Debt Plan:
As a conservative economist, I might be expected to oppose a stimulus plan. In fact, on this page in October, I declared my support for a stimulus. But the fiscal package now before Congress needs to be thoroughly revised. In its current form, it does too little to raise national spending and employment. It would be better for the Senate to delay legislation for a month, or even two, if that’s what it takes to produce a much better bill. We cannot afford an $800 billion mistake.
Nor is it true, as Rendell claimed, “Respected economists of every ideological stripe agree that it [a massive government stimulus] is the only choice for our economic recovery.” As David Boaz writes, there are “exactly zero libertarian or conservative economists on that much-touted spectrum.” Hundreds of economists have opposed the stimulus plan, which Rendell is mimicking in his budget.