Tuesday, August 18, 2009
Stiglitz argues for a second round of stimulus
Joe Stiglitz, writing on Project Syndicate, argues that the first round of stimulus was too small and poorly designed, (designed to address political, not economic, concerns). More stimulus would be a great idea, especially transfers to states, almost all of which are having to implement disastrous spending cuts and/or tax increases to balance their budgets, as Stiglitz also points out. Whether or not you think state government budgets are bloated, now is not a good time to fix this 'problem.'