Saving the Stimulus From its Critics?

I'm a bit flummoxed seeing columnists arguing that critics had better just shut up about the stimulus, because most of it hasn't even been spent yet.  For many of us critics, that's precisely the point.  A stimulus is supposed to counteract a sharp contraction in aggregate demand when that demand is contracting, not wait until the economy is recovering, at which point its effect is much more likely to be distortionary and inflationary.  The porkulus sacrificed stimulative power in order to slide Democratic legislators' pet projects past without ordinary scrutiny.  Now the economy seems to be turning around without it, and we're stuck with the pork.

Presented by

Megan McArdle is a columnist at Bloomberg View and a former senior editor at The Atlantic. Her new book is The Up Side of Down.

Never Tell People How Old They Look

Age discrimination affects us all. Who cares about youth? James Hamblin turns to his colleague Jeffrey Goldberg for advice.

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

Never Tell People How Old They Look

Age discrimination affects us all. James Hamblin turns to a colleague for advice.

Video

Would You Live in a Treehouse?

A treehouse can be an ideal office space, vacation rental, and way of reconnecting with your youth.

Video

Pittsburgh: 'Better Than You Thought'

How Steel City became a bikeable, walkable paradise

Video

A Four-Dimensional Tour of Boston

In this groundbreaking video, time moves at multiple speeds within a single frame.

Video

Who Made Pop Music So Repetitive? You Did.

If pop music is too homogenous, that's because listeners want it that way.

More in Business

Just In