Paul Krugman in the NY Times thinks more stimulus spending is needed:

… When Mr. Obama first proposed $800 billion in fiscal stimulus, there were two groups of critics. Both argued that unemployment would stay high — but for very different reasons.

One group — the group that got almost all the attention — declared that the stimulus was much too large, and would lead … to skyrocketing interest rates and soaring inflation.

The other group, which included yours truly, warned that the plan was much too small given the economic forecasts then available. … Critics in the second camp were particularly worried about what would happen this year, since the stimulus would have its maximum effect on growth in late 2009 then gradually fade out. Last year, many of us were already warning that the economy might stall in the second half of 2010.

Hmm …What can we learn from other countries regarding stimulus spending?

I’m reminded of a WSJ editorial that listed all of Japan’s stimulus attempts, and then intoned: “Not to spoil the party, but [stimulus spending] is not a new idea…How do you say ‘good luck’ in Japanese?”

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