Stimulus Is a Bust: I Want My Money Back
Ever since he taught my Econ 1 class, I’ve liked John Taylor. He always struck me as a practical guy, especially for a macroeconomist. So I was not surprised at what I found when I followed Arnold Kling link to Taylor’s analysis of the stimulus. Using Department of Commerce data, he calculates that a whopping 0.3% points of the 5.7% point recovery of GDP growth from the first to second quarter is attributable to the stimulus. Of all the positive impacts, private investment accounted for 75% of the total recovery.
So perhaps we could take back the $291B in stimulus money that hasn’t been spent yet. Probably the single easiest way to reduce the deficit.