Why the Stimulus Was a Fail
Here is some interesting pre-election reading from Open Market dot org. Basically, a Harvard Economist says that Obama and Democrat’s Stimulus package FAILED because it was no more than a reward for Obama’s friends.
Harvard economist Jeffrey Miron explains why the $800 billion stimulus package failed in a recent article.
Whatâ€™s interesting about Dr. Mironâ€™sÂ critique is that he shows how the stimulus was a failure even if you take for granted liberal assumptions about economic policy (such asÂ Keynesian economic theory),Â since it wasÂ so badly designed and executed that it failed to achieve its goals,Â spending wastefully while failing to revive the economy.Â Indeed,Â the stimulusÂ was so poorly tailored to the economy (and the goal of reducing unemployment) that Miron concludes thatÂ it was designed to reward politically connected â€œconstituenciesâ€ and special-interest groups, like public-employee unions, rather than beingÂ focused onÂ â€economic stimulus.â€
Other Harvard economics professors like Robert Barro have also criticized the stimulus package. Barro called it â€œthe worst bill that has been put forward since the 1930s.â€Â Former Obama economic advisor Martin Feldstein, a Harvard professor who is aÂ big believer in stimulus packages in principle, said thatÂ the stimulusÂ designed by Obama and congressional Democrats was â€œpoorly doneâ€
Much stimulus moneyÂ has been wasted.Â It has gone to prisoners and dead people, wasteful welfare spending, abandoned bridges to nowhere, and unnecessary government buildings.Â The stimulus subsidized foreign green jobs and wiped out jobs in Americaâ€™s export sector.
The â€œâ€™stimulusâ€™ is not the road to economic recovery. Itâ€™s the problem, not the solution, writes NobelÂ Prize winningÂ economist Vernon L. Smith.â€ Other Nobel Laureates like Gary Becker have also criticized the stimulus package.Â 200 economists signed a statement publicly opposing the stimulus package in an ad published in the Washington Post and New York Times.