More Government Spending Required to Stimulate the Economy? At Least 207 Economists Disagree

Notwithstanding reports that all economists are now Keynesians and that we all support a big increase in the burden of government, we the undersigned do not believe that more government spending is a way to improve economic performance. More government spending by Hoover and Roosevelt did not pull the United States economy out of the Great Depression in the 1930s. More government spending did not solve Japan’s “lost decade” in the 1990s. As such, it is a triumph of hope over experience to believe that more government spending will help the U.S. today. To improve the economy, policymakers should focus on reforms that remove impediments to work, saving, investment and production. Lower tax rates and a reduction in the burden of government are the best ways of using fiscal policy to boost growth.

[See full list of economists who disagree here @ Cato’s “Fiscal Reality Central”]

  • Akston

    Wow. For me, that article and statement actually evoked a kind of Hope I hadn’t felt since December 16th, 2007, and not for 30 years or so before that.

    I had begun to fear that Hope was doomed to be restricted to type favored by Obama fans, progressive politicians, and ostriches.

  • Akston

    Okay, maybe only 27 years. My math was off a bit.