online.wsj.com - 2/10/2009
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GARY S. BECKER and KEVIN M. MURPHY How much will the stimulus package moving in Congress really stimulate the economy? The evaluations to date have been incomplete, so we looked at the likely stimulative effect from the spending parts of the House and Senate bills -- over $500 billion -- and ...
econbrowser.com - 2/8/2009
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econbrowser.com —
Or, how come you used to say that
if consumers don't save more, it will wreck the...
economy, and now you say, if consumers do save more, it will wreck the economy? For the record, I am certainly among those who had been suggesting that America's low ...
(more)
The paradox of thrift
calculatedriskblog.com - 2/4/2009
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calculatedriskblog.com —
2009 will be a grim economic year. The
unemployment rate will rise all year, house prices will...
fall, commercial real estate (CRE) will get crushed ... but there might be a few rays of sunshine too. Look at these three charts of Cliff Diving: Click ...
(more)
Looking for the Sun
econbrowser.com - 2/5/2009
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econbrowser.com —
I've been thinking about why the numbers that
are typically bandied about in policy circles (at least...
that I'm familiar with) have so little impact on the overall general and blogosphere debate (see some examples here and here ). I think it's part ...
(more)
Why Can't We All Just Get Along? The Great Multiplier Debate
Comments
Blog Reactions
The Cato Institute Is Down to Zero...
J. Bradford DeLong's Grasping Reality with All Eight Tentacles —
... Becker and Murphy Say the Short-Term Benefit of the Stimulus Package Will Be Less Than Expected: How much will the stimulus package moving in Congress really stimulate the economy?... In the present environment, however, with growing unemployment of both labor and capital, the net stimulus would be larger [than zero] since the additional government spending would put some unemployed resources to work. For example, if the government spent money to build new homes with unemployed labor, the stimulus to GDP might be close to, even larger than, the amount spent.... In fact, much of ...
"The Short Run Deserved to Dominate"
Economist's View —
... Becker and
Murphy Say the Short-Term Benefit of the Stimulus Package Will Be Less Than
Expected: ...There are no free lunches in spending, public or private. The
increased federal debt caused by this stimulus package has to be paid for
eventually by higher taxes.... The burden from higher taxes down the road has to
be deducted both from any short-term stimulus provided by the spending program,
and from its long-run effects on the economy... ...
Assorted links
Marginal Revolution —
The Physics of BS | Main Assorted links 1. Karol Boudreaux is now blogging . 2. Against new banks . 3. Government as shareholder: trickier than you think. 4. Becker and Murphy on fiscal stimulus . 5. Why does flu spread more in winter ? Posted by Tyler Cowen on February 10, 2009 at 07:12 AM in Web/Tech | Permalink Comments Post a comment Name: Email Address: URL: Remember personal info? Comments:
There's No Stimulus Free Lunch
CARPE DIEM —
... by many others because the package tries to combine short-term stimulus with long-term benefits to the economy. Unfortunately, short-term and long-term gains are in considerable conflict with each other. Moreover, it is very hard to spend wisely large sums in short periods of time. Nor can one ever forget that spending is not free, and ultimately it has to be financed by higher taxes. ~Chicago economists Gary Becker and Kevin Murphy, today's WSJ
Becker and Murphy on Fiscal Stimulus
Greg Mankiw's Blog —
Gary and Kevin are skeptics.
Becker and Murphy on the Stimulus
TRUTH ON THE MARKET —
I’ve got the over-under on Krugman name-calling directed at both set at noon EST tomorrow. Any takers? Anyway, here’s some key excerpts from the WSJ piece : In a full-employment situation, increased government spending would largely replace private spending, so the net stimulus to GDP would likely be quite small. In the present environment, however, with growing unemployment of both labor and capital, the net stimulus would be larger since the additional government spending would put some unemployed resources to work. For example, if the government spent money to build new ...
The Badge of Dishonor
Lawrance G. Lux —
... , who thinks the multiplier will be close to zero. Gary Becker and Kevin Murphy can give the Reader some sense of why the multiplier will be low, though they are more optimistic than Barro. My personal vendetta with the Plan (Everyone else can call it a Package, but it is not tied up in a pretty box) devolves upon its few elements of Production expansion, its spread across the landscape to give Everyone a piece of the Pie, and its real potential to balloon Resource Costs. I would change the name of the thing to: How to ignore Consumer Demand Decline by letting the ...
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market-ticker.denninger.net 12/24/2008 —
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We already knew that the rise in inventory contributed 1.29% points to GDP growth. Without the inventory build, the GDP number would have been down 5.1%.And, it ...
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gregmankiw.blogspot.com 12/22/2008 — In thinking through the fiscal policy options and their implications, it might be useful to compare a few hypothetical, fanciful scenarios. Suppose that the federal government borrows some money and then... Case A : uses the money to give a lump-sum ...
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A Slimmer Stimulus? —
The Big Money 2/6/2009
Can a bipartisan group of senators get spending on the Obama stimulus plan under control before it balloons to well above $920 billion? That was the aim of fierce negotiations that went on behind closed doors on Thursday, as a vote looms as early as ...
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The Big Money 2/10/2009
About 10 percent of Americans today don't have access to high-speed Internet service. The rest of us are pretty much stuck in the granny lane—on average, we get broadband speeds of less than 5 megabits per second, 10 to 20 times slower than what ...
Forget America's Stimulus —
The Big Money 2/10/2009
So, it looks like we've got a stimulus package, though the $827 billion Senate proposal must still be reconciled with the House of Representatives' $820 billion blueprint. However, both versions spend only about $46 billion on infrastructure like ...
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