More Economists Join Higgs’s Call to “Do Nothing”
The Wall Street Journal has been polling economists throughout the recession on their forecasts, including for unemployment—which have not been very accurate—as well as advice on government policy. Their most recent response: “Economists Want Policy Makers to Back Off Now.”
Despite the continuing challenging conditions, 30 out of 48 economists ... said the economy didn’t need any more fiscal or monetary stimulus.
Had they heeded Robert Higgs’s advice 18 months ago, “Instead of Stimulus, Do Nothing—Seriously,” the $787 billion wasted by the American Recovery and Reinvestment Act of 2009 could have remained in the private sector, with vastly different outcomes than the negative multiplier of government spending. Instead, we have ongoing regime uncertainty, as markets, consumers, and investors remain wary of the Obama administration’s pursuit of one “top priority” after another.