Potomac Fever: The Stimulus Was Small

Tuesday, February 22, 2011

PL said...: yes, it was comparitively small. And for the size of our problem (the aggregate demand shortage), it was small (just as the Great Depression intervnetions were). Paul Krugman and Dean Baker (of CEPR fame) make these points repeatedly (not that I disagree- just pointing out). And the stimulus was not a FAILURE!!! The 'lamestream' media and conservative alternative have accepted this view and is peverting the understanding of the American populace, but I would argue that they are incorrect. The stimulus was essential for heading off an even worse financial crisis (which I know is an example of a non-existent counter-factual which is difficult to defend because I can't point to a real world result and say "Look! There! That's how it looks in this alternative parallel universe where we didn't pass the stimulus."; February 22, 2011 at 4:47 PM
TJE said...: http://online.wsj.com/article/SB10001424052748704679204575646603792267296.html; February 22, 2011 at 5:57 PM