Friday, January 25, 2008

Economists and fiscal Stimulus

. Friday, January 25, 2008

The New York Times disputes my assertion that the serious economists do not think that fiscal stimulus is warranted at this point. Apparently, mainstream economists such as Jared Bernstein (Economic Policy Institute), Alan Tonelson (?) and Larry Summers (Clinton Administration) think that stimulus is warranted. Only non-mainstream economists such as David Henderson, (who the Times labels as a "libertarian economist") question its merits. As an aside, I don't know why Bernstein doesn't warrant a "liberal economist" label if Henderson warrants the "libertarian" one. And Alan Tonelson is not an economist. His bio says he has a BA in History.

The story draws conclusions that are not warranted by the evidence provided: "Most economists praised the deal as a necessary effort that by increasing the public debt to put cash swiftly into the hands of ordinary consumers, could limit the severity and duration of a recession and very likely spare some jobs." Did they survey all economists? If not, how do they know that this is what most economists did?

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Economists and fiscal Stimulus
 
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