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krugman.blogs.nytimes.com - 2/2/2009

Protectionism and stimulus (wonkish)

— krugman.blogs.nytimes.com — Should we be upset about the buy-American provisions in the stimulus bill? Is there an economic case... for such provisions? The answer is yes and yes. And I do think it's important to be honest about the second yes. The economic case against ... (more) Protectionism and stimulus (wonkish)

Stimulus Plan

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5

csmonitor.com - 2/9/2009

Instead of stimulus, do nothing – seriously

— csmonitor.com — Stimulus is unconstitutional. And history shows that the economy can recover strongly on its own, if politicians... stay out of the way. (more) Instead of stimulus, do nothing – seriously

Commodities

Stimulus Plan

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3

online.wsj.com - 1/28/2009

Stimulus Bill Near $900 Billion

— online.wsj.com — [stimulus] See how some of the major stimulus spending will be shared by the states.... (more) Stimulus Bill Near $900 Billion

Stimulus Plan

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The Case for No Stimulus
Angry Bear — ... a very large stimulus package. But there is a catch. Every penny of such a package must be borrowed, because the government is already running a $1.2 trillion deficit this year and faces a $703 billion deficit for next year, according to the non-partisan Congressional Budget Office. The question, then, is whether the government can help the economy by spending money if it can only do so by first sucking that money out of the economy. An interview with Heritage Foundation's leading budget analyst Brian Riedl, can be summarized as ...

Cato and the National Review Adopt the Treasury View
EconoSpeak — David Freddoso of the National Review interviews Brian Riedl of Cato in the The Case for No Stimulus: The grand Keynesian myth is that you can spend money and thereby increase demand. And it’s a myth because Congress does not have a vault of money to distribute in the economy. Every dollar Congress injects into the economy must first be taxed or borrowed out of the economy. You’re not creating new demand, you’re just transferring it from one group of people to another. If Washington borrows the money from domestic lenders, then investment spending falls, ...

CBO Does Not Agree With Brian Riedl
EconoSpeak — ... , Brian Riedl tried to argue short-term crowding-out, which the CBO quite clearly says will not be the case. Even the most ardent Keynesian would concede that long-term fiscal stimulus leads to long-term crowding-out. Only those pseudo-economists who were apologists for the Bush43 fiscal stimulus would try to deny this. In my view, the ideal fiscal stance would be short-term stimulus followed by long-term fiscal restraint once the economy approached full employment. This was the policy of the Clinton Administration as I understand it – it is what is being recommended to ...