Via Greg Mankiw:
More Spending Stimulus Skeptics
The Chicago Tribune reports: John Cochrane, a professor at the University of Chicago Booth School of Business, says that among academics over the last 30 years, the idea of fiscal stimulus has been discredited and in graduate courses, it is “taught only for its fallacies.”
New York University economist Thomas Sargent agrees: “The calculations that I have seen supporting the stimulus package are back-of-the-envelope ones that ignore what we have learned in the last 60 years of macroeconomic research.”
The reality-based community also seems to have ignored the last 60 years of evidence on the failures of central planning. I like how they have turned the term reality on its head, just like they did with the word “liberal” and then with “progressive.” Can’t wait to see what’s next!
Maybe on Tuesday my house will sell.