Saturday, July 24, 2010

Economic Fish Stories

Michael J. Boskin:

"President Obama says 'every economist who's looked at it says that the Recovery Act has done its job'—i.e., the stimulus bill has turned the economy around. That's nonsense.

Opinions differ widely and many leading economists believe that its impact has been small. Why? The expectation of future spending and future tax hikes to pay for the stimulus and Mr. Obama's vast expansion of government are offsetting the direct short-run expansionary effect. That is standard in all macroeconomic theories.

So, as I and others warned in 2008, the permanent government expansion and higher tax rate agenda is a classic example of what not to do during bad economic times. Worse yet, all the subsidies, bailouts, regulations and mandates are forcing noncommercial decisions on the economy, which now awaits literally thousands of new diktats as a result of things like ObamaCare and the financial reform bill. The uncertainty is impeding investment and hiring."

More economic fish stories are found here and here

As well we know, that particular blog, and many of its commentators (some of whom actually profess "expertise" in the subject) are routinely at the top of the clueless list on the general subject of the economy, just like their big brother hero.

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