Group of Economists: Bigger Stimulus Required
January 29th, 2009 at 7:31 pm - by admin
The $825 billion stimulus package could be the costliest move in U.S. history, and a number of economists have a problem with that - from insisting that inflation and irrational changes in the money supply will make it inefficient, to this group of not-quite fringe economists who believe it’s entirely too small.
The idea is that the when a massive economy has problems, a moderately large economic stimulus package will just cause larger problems - inflation, debt and all the related problems will cause the problem to explode, rather than repair. A larger stimulus may help recover growth and development, and thus save the large economy, rather than further harming it, says this group, who’s calling for a 1/3rd increase in the size of the current stimulus.
A non-profit coalition of these larger-stimulus economists are setting up a conference with Vice President Biden to discuss the concept of a larger stimulus package as part of the “Thinking Big, Thinking Forward” meeting, according to political news site Politico.com.
The center, while being fringe-leaning, is headed by John Podesta, a senior Obama economic adviser during the transition.


