Bury Keynesian Voodoo Before It Can Bury Us All
Today’s must read comes from Kevin Hassett writing for Bloomberg, who discounts the theory that a larger stimulus would have fared any better:
The fact is, the U.S. stimulus was the largest among members of the Organization for Economic Cooperation and Development, and the biggest ever tried in the U.S.Nor does the academic literature support what we might call these Not-Enough Keynesians.
A 2002 study by economists Richard Hemming, Selma Mahfouz and Axel Schimmelpfennig of recessions in 27 developed economies from 1971 to 1998 found that increased spending by government had, in almost all cases, a barely noticeable impact, and sometimes a negative one. Heavily indebted countries that spent more in recessions grew about 0.5 percent less, relative to trend, than countries that didn’t, the study found.
Read it all.
Technorati Tags: Bankrupting America, Simulus and Other Failed Policies, Jobless Recovery, Double Dip Recession, Rising Unemployment in America, Stagnant Economic Conditions, Barack Hussein Obama the Dangerous Choice, Obama the Amatuer in Charge
