David Leohnhardt makes the case.
I don't know why this is so hard for people to understand. Yet we still hear "we tried Keynesian stimulus and look - nothing happened". Explain to me precisely what "Keynesian stimulus we tried". The Feds filled a hole that the states were digging - once you net that out there was very little stimulus to speak of.
I'm making essentially the same point in an opinion piece I'm sending in to the Washington Post to coincide with the release of the second quarter GDP statistics. If it doesn't make it through, I'll post it here.
This really isn't that hard. We've done some monetary policy, although as many people point out the monetary environment was still contractionary, not expansionary. Fiscal policy was more or less a flat line. That's the policy environment, and the macroeconomic response is pretty much what I would have expected from that sort of policy environment.
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