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Archive of posts published in the tag: stimulus

Growth Elements are Now in Place

Deficits do matter, but like the stimulus it also matters how they are spent.  Stimulating demand is less effective than stimulating investment.  Demand stimulus is only effective briefly under certain conditions. Stimulating investment pays dividends (pun intended) much longer.

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The Freshest Ideas from 1916

  from the editors of The National Review, Hilary’s Disastrous Economic Plan But it is a statement of Mrs. Clinton’s priorities, which are giving handouts to her corporate allies, strengthening the whip hand of politicians over health care, bribing the Sanders-Warren…

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Hillary’s Trickle Down

    from the editors of The National Review, Hilary’s Disastrous Economic Plan It is economically illiterate, but Mrs. Clinton sincerely believes it, arguing that, in the same vein, raising the federal minimum wage would actually help U.S. employers by…

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Bridges to Stagnation

from The Clinton Plan’s Growth Deficit by John Cochrane in The Wall Street Journal America’s foremost economic problem is sclerotic growth. If the economy continues to expand at only 1% to 2% a year, instead of the historical 3% to…

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Fix the Structure of Government

from The Clinton Plan’s Growth Deficit by John Cochrane in The Wall Street Journal Her speech Thursday at least identifies the problem: “Powerful special interests and the tendency to put ideology ahead of political progress have led to gridlock in Congress.” To…

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A Seductive Economic Tool

John Cochrane writes in his blog, The Grumpy Economist, Christina Romer on Stimulus, 10/22/12 Excerpt:  I don’t think anyone disagrees with the proposition that if the government takes money from residents of state A and splashes them on state B,…

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How Not to Grow the Economy

Economist Scott Grannis in Calafia Beach Pundit (a recommended daily read) writes “Why The Recovery Continues to be Subpar”  (May 27,2011): excerpt: Monetary “stimulus” that involves very low short-term interest rates and lots of bond purchases can’t create growth out…

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Does Stimulus Work?

The government has spent trillions to stimulate the economy. Interest rates are at a record low. Yet American businesses are sitting on top of trillions of dollars of cash, reluctant to spend any of it to grow or hire.  Does…

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Financial Observations 08 20 2010

IBM, Johnson and Johnson,  and McDonalds are issuing debt with rates comparable to US government debt and at lower rates than that offered by many foreign governments. What does this mean?  That bond buyers consider blue chip corporations as safe…

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Destimulation

Why the Stimulus Flopped By Mark Steyn in National Review Online Excerpt: That’s why the “stimulus” flopped. It didn’t just fail to stimulate, it actively deterred stimulation, because it was the first explicit signal to America and the world that…

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A Clunker Economy

The editors of National Review note the destructive aspects of the cash-for-clunkers program in “Uncreative Destruction”.  read it here. If there is one absolute rule in economics it is that everything has a cost.  What were ‘clunkers’ to the program…

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Should We Now Cancel the Stimulus ?

The stock market has risen over 40% from the March lows.  While the administration is sure to take credit for the market, they should do so cautiously.  Since only a very small part of the stimulus package has been spent,…

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