Wednesday, July 28, 2010

NY Times Finds the Only Two Economists Not Named Paul Krugman Who Still Love the Stimulus

The New York Times is desperate to give the Democrats' disastrous economic policy some gloss of respectability, and so they go to two well-known partisan, dyed-in-the-wool Keynesian disciples - Mark Zandi and Alan Blinder - to give them cause to write that, definitively, the stimulus worked to keep us out of the ditch. Zandi has been working CNBC overtime to give the stimulus and the Democrats some credibility. Blinder has been all over the Op-Ed pages of the WSJ doing the same. These two, plus Paul Krugman, are perhaps the only economists left that still defend the stimulus with full throated passion. Meanwhile, Robert Barro, Gary Becker, Allan Meltzer, Vernon Smith and even Jeff Sachs have concluded that the stimulus was a waste of money. We avoided another Depression for many reasons but if you had to pinpoint just one, it was clearly Ben Bernanke gunning the monetary accelerator - it's the only policy lesson we've learned well and done right this time around.

UPDATE: And Bill Gross is not much enamored of the stimulus either. Granted, he doesn't work at Princeton, but he's been pretty damn successful understanding and navigating his way around economic realities.

UPPDATE: John Taylor ain't buying it either.


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