From AdSavvy.com, a report on the advertisement taken out in the Washington Post, the New York Times, the Los Angeles Times, Chicago Tribune, Washington Times, and Roll Call by 300 economists. The ad, pictured above, calls Obama out on his call that their is no disagreement that the stimulus package is needed. The text from the ad is featured below. The AdSavvy.com blog posting is HERE.
“There is no disagreement that we need action by our government, a recovery plan that will help to jumpstart the economy.”
— President Elect Barack Obama, January 9, 2009
With all due respect Mr. President, that is not true.
Notwithstanding reports that all economists are now Keynesians and that we all support a big increase in the burden of government, we do not believe that more government spending is a way to improve economic performance. More government spending by Hoover and Roosevelt did not pull the United States economy out of the Great Depression in the 1930s. More government spending did not solve Japan’s “lost decade” in the 1990s. As such, it is a triumph of hope over experience to believe that more government spending will help the U.S. today. To improve the economy, policy makers should focus on reforms that remove impediments to work, saving, investment and production. Lower tax rates and a reduction in the burden of government are the best ways of using fiscal policy to boost growth.”
