• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • But We Thought All Economists Loved This Stimulus Plan?


    A little while ago, Vice President Joe Biden had the audacity to say,   “Every economist, as I’ve said, from conservative to liberal, acknowledges that direct government spending on a direct program now is the best way to infuse economic growth and create jobs.

    Well, the McClatchy wire carried this headline today: “Will the stimulus actually stimulate? Economists say no.” From the story:

    “I think (doing) nothing would have been better,” said Ed Yardeni, an investment analyst who’s usually an optimist, in an interview with McClatchy. He argued that the plan fails to provide the right incentives to spur spending.

    Another reason that some analysts frown on the stimulus is the social spending it includes on things such as the Head Start program for disadvantaged children and aid to NASA for climate-change research. Both may be worthy efforts, but they aren’t aimed at delivering short-term boosts to economic activity.

    Even some proponents of a stimulus are disappointed, however. Harvard University economist Martin Feldstein, a former adviser to President Ronald Reagan, was an early supporter. He said that government is now the only engine left to spark economic activity, but he said that the compromise falls short of what’s needed.

    “If the choice is between the current bill and an improved bill, I would say wait and improve the bill,” Feldstein told CNBC on Wednesday after the compromise was announced. “I am disappointed with the structure of this bill.”

    Like Yardeni and other analysts, Feldstein wanted more incentives for consumers to make big purchases that have ripple effects across the economy. When a car is purchased, it helps not only the carmaker, but its suppliers, the trucking companies and railroads that transport cars, the states that issue license plates and so on.

    Posted in Ongoing Priorities [slideshow_deploy]

    5 Responses to But We Thought All Economists Loved This Stimulus Plan?

    1. Ozzy6900, CT says:

      Does anyone really listen to anything Vice President Joe Biden says?

    2. wondering kansas says:

      Only for comic relief.

    3. Beaverbeliever, Oreg says:

      If anyone believes what Biden says, I've got a bridge (to nowhere) I'd like to sell him!

    4. Chris in Guyton, Geo says:

      This group perpetually "feeds" off each other and is a legend only in their own mind. They are completely out of touch with the middle man who, by the way, provides the money they squander that they don'teven help earn!

    5. Pingback: American Idiots « American Sheep

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.