But We Thought All Economists Loved This Stimulus Plan?
Conn Carroll /
A little while ago, Vice President Joe Biden had the audacity to say, “Every economist, as I’ve said, from conservative to liberal, acknowledges that direct government spending on a direct program now is the best way to infuse economic growth and create jobs.”
Well, the McClatchy wire carried this headline today: “Will the stimulus actually stimulate? Economists say no.” From the story:
“I think (doing) nothing would have been better,” said Ed Yardeni, an investment analyst who’s usually an optimist, in an interview with McClatchy. He argued that the plan fails to provide the right incentives to spur spending.
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Another reason that some analysts frown on the stimulus is the social spending it includes on things such as the Head Start program for disadvantaged children and aid to NASA for climate-change research. Both may be worthy efforts, but they aren’t aimed at delivering short-term boosts to economic activity. (more…)