Saturday, January 10, 2009

Can we take a breath before we spend a trillion dollars?

While Washington gears up to do what Washington does best (spend money) is there anybody willing to ask if this stimulus is the right move? NYT: "No Instruction Manual as Stimulus Bill Takes Shape"

Christina Romer, whom Mr. Obama has designated to be his chief economist, concluded in research she helped write in 1994 that interest-rate policy is the most powerful force in economic recoveries and that fiscal stimulus generally acts too slowly to be of much help in pulling the economy out of recessions, though associates said she now supports a big stimulus package if policy makers roll it out early enough in the recession.
Our budget deficit and national debt are reaching levels unseen since World War II and we're about borrow more money from Beijing for a "stimulus" with dubious effectiveness.

1 comment:

The Sanity Inspector said...

We may as well be flinging money from the back of a speeding train.