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  • economic stimulus

    New Deal Never Solved Unemployment Crisis

    President-elect Barack Obama wants to blow at least $1 trillion, and probably more, on a New New Deal. Before he does, perhaps we should take a look at the real record of the Old New Deal on unemployment.

    Cut Non-Essential Spending First

    Some members of Congress who may have signaled support for “serious deficit spending” earlier in the week seem to have toughened their stance after news of just how serious the deficit looks to be. To help Congress begin the spending cuts, we’ve started a list of non-essential government spending that … More

    The Big Lie at the Center of Big Spending Stimulus

    Barack Obama is trying to convince the American people that when it comes to his economic stimulus plan, “We’re guided by what works, not by any ideology or special interests.” But as the  New York Times reports today, nobody has any idea “what works.” First the Times reports: Nearly every … More

    Morning Bell: Temporary Tax Cuts, Permanent Spending, and "Trillion Dollar Deficits for Years to Come"

    One of the biggest challenges President-elect Barack Obama faces in the years to come is how to both enact “swift and bold” changes to public policy while still blaming President Bush for everything that is bad about the economy. Hence Obama’s press conference yesterday where he anesthetized Americans to the … More

    Why Is the Left So Eager to Waste Money?

    The usual suspects on the left are very concerned that Obama is pushing too many temporary tax cuts and not enough government spending in his constantly evolving stimulus package. But how much money can the federal government really pour into public spending? Harvard professor Ed Glaeser notes: While the mechanics … More

    Morning Bell: Don't Take the Bait for Obama's Trillion Dollar Spending Trap

    Across the country today, President-elect Barack Obama got exactly the headlines he wanted from his supporters in the establishment media. “Obama Pitches Stimulus Plan: GOP Asked to Help Design” says the Washington Post. “Obama Sweetens Stimulus for GOP” reports the Los Angeles Times. Obama Finds Lovefest on Capitol Hill blares … More

    No, Serious Deficit Spending is Not Immediately Needed

    Government spending does not create economic growth. Regrettably, many in Congress, Republicans and Democrats alike, have ignored this fact. Just today, Senator Judd Gregg (R-NH), declared in his Wall Street Journal op-ed How to Make Sure the Stimulus Works that, “it is fairly obvious that serious deficit spending is needed … More

    Krugman's Phony Government Spending Facts

    Paul Krugman blogs: Let’s lay out the basics here. Other things equal, public investment is a much better way to provide economic stimulus than tax cuts, for two reasons. First, if the government spends money, that money is spent, helping support demand, whereas tax cuts may be largely saved. So … More

    Better Stimulus Through Trade

    Reuters reports this weekend: Obama’s transition team said it is mulling “buy American” provisions for the stimulus package that could favor U.S. companies over foreign competitors. Protectionism is the last thing our economy needs right now. The last time the U.S. reverted to protectionism in a time of economic turmoil … More

    Paul Krugman Loves Wasteful Government Spending

    Krugman writes today: The biggest problem facing the Obama plan, however, is likely to be the demand of many politicians for proof that the benefits of the proposed public spending justify its costs — a burden of proof never imposed on proposals for tax cuts. This is a problem with … More