Diary

A Righteous Smackdown For Keynesian Fiscal Stimulus

Courtesy of Arnold Kling. And see Nick Gillespie as well. Anyone else think that we are rushing headlong into a policy thicket we don’t quite understand? The “bigger is better” spirit is alive and well when it comes to planning out fiscal stimulus, but as Kling points out, no one can quite tell us why bigger is better except that . . . well . . . it is.

If this is a smart justification for fiscal stimulus, I’d hate to hear a dumb one. At best, it’s a vague justification for fiscal stimulus and yet, no one is really challenging this line of thought in any way, shape or form. Usually–heck, almost always–this lack of debate concerning the implementation of a particular policy means that said implementation ends in tears. What makes us think that the case of the Obamaian fiscal stimulus plan will be any different?