Wednesday, February 17, 2010

Is More Stimulus Needed?

Not an original thought this morning, but this is from the Council on Foreign Relations and a solid aggregator of opinions as it relates to the stimulus bill one year on:

In February, President Obama proposed a $100 billion jobs bill that would include tax cuts for small businesses, social-safety-net programs, and aid to state and local governments. Republicans criticized the proposal for being a new and unnecessary round (NPR) of stimulus spending that would stifle private sector growth. But IMF Managing Director Dominique Strauss Kahn in January 2010 urged advanced economies not to relax stimulus measures too early and to focus stimulus on creating jobs. At a January 2010 briefing at the Council on Foreign Relations, Chief Economist of the World Bank Justin Yifu Lin explained the U.S. and global dilemma as follows: "If you exit from fiscal stimulus, you are going to have a dip. If you maintain the stability of a fiscal stimulus, the intensity may not be enough."

When you've got the World Bank and the IMF telling you more stimulus is a good idea, maybe you should listen. For the full article click here.

1 comment:

Colin said...

Given the records of both institutions, maybe the opposite of what they recommend is in order.