Monday, March 1, 2010

The Argument for a Larger Stimulus.

Paul Krugman wrote this today. He makes a very convincing point, it looks like we needed a bigger stimulus. It seems the numbers are just to staggering for our politicians to comprehend. Which at its core is the problem with our Government, they think they are smarter then the experts.

Krugman writes.

It’s crucial to realize that the trillion dollars’ worth of goods and services we could have produced this year, but won’t, is a loss we’ll never make up. And that doesn’t count the suffering and damage to our future inflicted by the non-monetary costs of mass long-term unemployment.

And yet, the prevailing sentiment in Washington and other centers of power is that we’ve done enough, and that it’s time to start pulling back — to normalize monetary policy, tighten our fiscal belts. Policymakers are congratulating themselves for avoiding total collapse, when they should be berating themselves for failing to engineer recovery.

It’s tragic.

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