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In response to
"They might have a poin if only their prefered methods of interest rate reductions and tax cuts hadn't failed"
by
The Calico Cat Coalition
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Barro's actually fairly liberal. what I don't buy is using war economy as a comparison here. government paying for things the government then takes
Posted by
mafic
Jan 31 '09, 07:11
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and uses (and in many cases blows up) isn't a valid comparison to what would happen with the stimulus bill. while the multiplier he's talking about might not be the 1.5 that Obama's team is apparently using, it'll almost certainly be higher than the 0.8 he suggests.
I'm not a big fan of government intervention in general, but I'd also argue that in this case the government might be better at marshaling idle resources than the private sector. the private sector not being able to do just that is a big part of what the current turmoil is all about.
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