The number of economists arguing forcefully against efforts to use more deficit spending to stimulate the economy is increasing. Their arguments differ in important respects, ranging from empirical evidence that the stimulus programs thus far have done little to help the economy to the recognition that the growing debt is a serious threat to long term growth and economic stability. Already this week we have
Niall Ferguson’s Today’s Keynesians Have Learned Nothing,
Ken Rogoff’s No Need for A Panicked Fiscal Surge,
Vernon Smith’s Please, No More Government Spending ,
and my Cutting National Debt = Stimulus.
The bottom line is that we can help the economy more by laying out a credible plan to end the debt explosion.