This blog was previously devoted to seeing to it that Larry Summers get to spend more time with his family. Mission accomplished! The next mission is to provide the President with sage Economic advice.
Tuesday, January 27, 2009
Exposing the Chicago School
Both Paul Krugman (http://krugman.blogs.nytimes.com/) and Brad DeLong (http://delong.typepad.com/) have done much to point out how mystifyingly stupid many conservative economists, particularly macroeconomists, are. Another point they do not seem to grasp is that, because of state and local budget cuts, the Obama stimulus package, which is really over the next three or four years (with parts of it taking even longer), is much, much smaller than it looks like. I.e., state governments alone have more than $350 billion in revenue shortfalls over the next few years, despite substantial cuts already... So, an argument against the stimulus is really an argument that the government should cut spending in the face of a recession... This fact just makes their arguments an order of magnitude crazier...