Arthur Laffer: The Real 'Stimulus' Record

Discussion in 'Politics' started by Listening, Aug 6, 2012.

  1. Listening
    Offline

    Listening Gold Member

    Joined:
    Aug 27, 2011
    Messages:
    14,989
    Thanks Received:
    1,641
    Trophy Points:
    260
    Ratings:
    +2,044
    Arthur Laffer: The Real 'Stimulus' Record - WSJ.com

    Policy makers in Washington and other capitals around the world are debating whether to implement another round of stimulus spending to combat high unemployment and sputtering growth rates. But before they leap, they should take a good hard look at how that worked the first time around.

    It worked miserably, as indicated by the table nearby, which shows increases in government spending from 2007 to 2009 and subsequent changes in GDP growth rates. Of the 34 Organization for Economic Cooperation and Development nations, those with the largest spending spurts from 2007 to 2009 saw the least growth in GDP rates before and after the stimulus.

    .......................

    The evidence here is extremely damaging to the case made by Mr. Obama and others that there is economic value to spending more money on infrastructure, education, unemployment insurance, food stamps, windmills and bailouts. Mr. Obama keeps saying that if only Congress would pass his second stimulus plan, unemployment would finally start to fall. That's an expensive leap of faith with no evidence to confirm it.

    *******************

    Since when did the lemmings on the left need evidence ?
     
  2. AmyNation
    Offline

    AmyNation Road Warrior Supporting Member

    Joined:
    Aug 6, 2012
    Messages:
    9,021
    Thanks Received:
    1,013
    Trophy Points:
    48
    Location:
    Currently stationed at the kitchen table
    Ratings:
    +1,016
    Why does the graph on that article start 2007?

    The stimulus wasn't even in full swing until 2010
     
  3. 8537
    Offline

    8537 Senior Member

    Joined:
    Aug 23, 2010
    Messages:
    7,754
    Thanks Received:
    729
    Trophy Points:
    48
    Location:
    New England's West Coast
    Ratings:
    +729
    Because Mr Laffer is still doing his economics on the back of cocktail napkins.
     
  4. Listening
    Offline

    Listening Gold Member

    Joined:
    Aug 27, 2011
    Messages:
    14,989
    Thanks Received:
    1,641
    Trophy Points:
    260
    Ratings:
    +2,044
    I suspect it was supposed to give you some perspective prior to the stimulus so that you'd have a comparison basis.
     
  5. 8537
    Offline

    8537 Senior Member

    Joined:
    Aug 23, 2010
    Messages:
    7,754
    Thanks Received:
    729
    Trophy Points:
    48
    Location:
    New England's West Coast
    Ratings:
    +729
    Change in real GPD growth from 06-07 to 08-09?

    Is it any wonder nobody takes him seriously?

    Hint: 08-09 was the deepest point of the recession and before almost any nation (including the US) had implemented a stimulus package.
     
  6. 8537
    Offline

    8537 Senior Member

    Joined:
    Aug 23, 2010
    Messages:
    7,754
    Thanks Received:
    729
    Trophy Points:
    48
    Location:
    New England's West Coast
    Ratings:
    +729
    But instead it gives is some perspective prior to the financial crisis and the recession without accounting at all for stimulus.
     

Share This Page