Wednesday, February 11, 2009

Unfortunately, the reality is...

that as valuable as the symbolism of an economic stimulus package is, someday it will have to be paid for. And we might not actually get much for the money that is spent.

This from a couple of the world's leading economists:

Our own view is that the short-term stimulus from the legislation before Congress will be smaller per dollar spent than is expected by many others because the package tries to combine short-term stimulus with long-term benefits to the economy. Unfortunately, short-term and long-term gains are in considerable conflict with each other. Moreover, it is very hard to spend wisely large sums in short periods of time. Nor can one ever forget that spending is not free, and ultimately it has to be financed by higher taxes.

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