Friday, January 25, 2008

Economic Stimulus - What Economists Think

The congress and the administration are now in agreement that the economy needs a fiscal stimulus. They also have a working agreement on what it will include.

In my classes, we've gone over how this will work, and I've noted that most economists are fairly skeptical about it having any real effect. The concensus view seems to be that it won't help much, but it won't hurt too much either. My personal opinion is that I'll be glad to take the money, but I don't think it will have much impact on the economy as a whole.

For those who would like to see what other economists have to say I offer the following (in no particulat order.)

From Arnold Kling - Stimulus: The Mainstream View

From Megan McArdle - Have I mentioned . . . .

From Alex Tabarrok - Against Fiscal Stimulus and Investment tax credit as fiscal stimulus

From Greg Mankiw - Proposed Fiscal Stimulus: My View also note the Lags in Fiscal Policy

From The Economist - Pointless Stimulation

From Bruce Bartlett - Feel-Good Economics

There are others, but you get the idea.



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