No better than Greece
Q:The overwhelming consensus among economists is that the economy needs another shot of short-term stimulus spending. But as the president and congressional leaders have discovered in trying to pass a new stimulus bill, voters want to start bringing the deficit down now. Is this one of those leadership moments when it is better to accommodate strong constituent beliefs rather than trying to convince them they are wrong?
The problem with the current stimulus proposal is that it is primarily aimed at saving state and local government jobs in states that have been no better than Greece in solving their own fiscal challenges.
A true stimulus would be directed at the encouragement of long-term private employment and would move in quite a different direction. In this case the administration may well be better off losing than winning and creating more disillusionment when its "stimulus" fails.
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