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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Sam who wrote (105547)	3/6/2009 9:54:15 PM
From: greenspirit	Read Replies (3) \| Respond to of 540884

Sam, the Obama Administration claims virtually all economists support their approach to spending. That is patently untrue. Over 200 economists including Nobel winners Ed Prescott, James Buchanan, and Vernon Smith signed a letter opposing the stimulus legislation. cato.org. And many other world renoun economists are critical, including Arthur Laffer. Even liberal economists Alice Rivlin and Alan Blinder have criticized aspects of the spending bill. Economic Council Director Larry Summers wrote, "poorly provided fiscal stimulus can have worse side effects than the disease that is to be cured. Fiscal stimulus, to be maximally effective, must be clearly and credibly temporary--with no significant adverse impact on the deficit for more than a year or so after implementation. Otherwise it risks being counterproductive by raising the spectre of enlarged future deficits pushing up longer-term interest rates and undermining confidence and longer-term growth prospects." The CBO has joined critics by releasing a report projecting the stimulus will worsen the long-run performance of the economy.