With all due respect, the FED has been stimulating to the tune of 80 billion a month with no end in sight. That’s almost a trillion dollars a year and 7 trillion if the multiplier effect is considered.
The recommendation seems to be to spend like crazy and we’ll figure out how to fix the consequences later. Responsible proposals should say 1) How much stimulus. 2) Since stimulus implies huge debt, how does the debt get repaid and on what schedule?
Until we can get a real plan on which we can agree the more stimulus won’t happen. Some treat economic theory like religion and stimulus like the proverbial “Hail Mary” pass.
EDITOR: Absolultely. What most prominent economists have recommended over the past few years has been more stimulus at the outset to accelerate recovery. Then reduction of federal expenditures and increases in taxes to replicate what occurred over the latter Clinton years, when it looked as though the danger was totally paying off the national debt.zx
We cringe when we here politicians talk about simultaneously increasing stimulus and reducing the fiscal deficit. How do you move in opposing directions at the same time?
