A Voice in the Wilderness In Defense of "Mere Conservatism"

Has the Stimulus Worked?

From Robert J. Barro, writing in yesterday's Wall Street Journal:

The first anniversary of the Obama stimulus package generated a lot of discussion about whether and how much the package (originally estimated at $787 billion but now priced at $862 billion) moderated the recession. These are complex questions, and their answers require more than merely counting the quantity of goods and services that the government purchased or the number of people that the government hired.

We need to ask whether the government's spending reduced or enhanced private spending and whether public-sector hiring lowered or raised private hiring. This requires an empirical model based on the history of past fiscal actions in the U.S. or other countries. The administration must have such a model, but my own analysis makes me skeptical about the numbers they've reported about GDP increases and saved jobs.

I'm so disgusted with this new "jobs bill" that was passed this week.  Just read the rest of the Barro article and mentally prepare for November.