The Case for Another Stimulus

More

The unemployment rate is higher than the Administration forecast.  From a Keynesian perspective, this suggests that the need for a stimulus is even greater than when President Obama took office.


I would score one point for those of us who argued for a stimulus that takes effect in 2009 rather than in 2010 and beyond.  We could still do that, by enacting a payroll tax cut, effective immediately.

However, if a "second stimulus" means piling on more spending in 2011 and beyond, that might prove counterproductive by raising interest rates and depressing the economy in the short run.

Jump to comments
Presented by

Arnold Kling

Arnold Kling earned his Ph.D in economics at MIT. He was an economist on the staff of the Federal Reserve Board. From 1986-1994 he worked at Freddie Mac. He started Homefair.com in 1994 and sold it in 1999. His fourth book, From Poverty to Prosperity, co-authored with Nick Schulz, is due out in April of 2009. He blogs regularly at Econlog.
Get Today's Top Stories in Your Inbox (preview)

Sad Desk Lunch: Is This How You Want to Die?

How to avoid working through lunch, and diseases related to social isolation.


Elsewhere on the web

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

Where Time Comes From

The clocks that coordinate your cellphone, GPS, and more

Video

Computer Vision Syndrome and You

Save your eyes. Take breaks.

Video

What Happens in 60 Seconds

Quantifying human activity around the world

Writers

Up
Down

More in Business

Just In