More on the Fiscal Stimulus Debate

by: Casey Mulligan

Watch this one, and cast your vote.

I was amazed by a couple of Baker's points:

  1. Even wasteful spending is helpful. How can that be?

  2. Unemployment is guaranteed to go above 10%, and will likely be above 11% for a LONG time. It won't take long until that claim looks pretty silly (although its probably irrelevant for evaluating the costs and benefits of stimulus)