A Failure to Communicate, Not a Failure to Stimulate

It’s a little difficult to reply to Prof. Mishra’s latest op-ed because it doesn’t really have a point. It goes all over the place. As far as I can tell, the only actual argument he makes against President Obama’s American Jobs Act is:

…the first stimulus bill in 2008, a $700 billion package geared toward government spending to stimulate the economy, and financed with borrowed money, has obviously failed to create new jobs.

He never offers any evidence to support this claim.

I’ve disproven this hypothesis before, but I’ll do so again — first by repeating what I said last time, then with even more evidence. If you’ve already read the first part, you might want to skip to the new stuff, though it can’t hurt to refresh your memory…   Continue reading “A Failure to Communicate, Not a Failure to Stimulate”

The Day the Economics Profession Lost Its Last Shred of Dignity

January 14, 2011. That’s when Stanford economist John B. Taylor made the following arguments:

  1. Higher government purchases, as a percent of GDP, are associated with higher rates of unemployment. Therefore: “There is no indication that lower government purchases increase unemployment; in fact we see the opposite…”
  2. Higher levels of investment, as a percent of GDP, are associated with lower rates of unemployment. Therefore: “Encouraging the creation and expansion of businesses should be the focus on government efforts to reduce unemployment. The recent compromise agreement to prevent the increase in tax rates on small businesses and the move to lighten up on the anti-business sentiment coming out of Washington are two steps in the right direction.”

And with that, I lost all respect for Taylor.   Continue reading “The Day the Economics Profession Lost Its Last Shred of Dignity”

Best of the Week: May 2-8, 2010

10. Cuba: A Way Forward — Nik Steinberg & Daniel Wilkinson
9. Who Pays for the Oil Cleanup? — Bradford Plumer
8. Five Myths About the Pill — Barbara Kantrowitz & Pat Wingert
7. The Message from the Glaciers — Orville Schell
6. Big Pharma, Bad Medicine — Marcia Angell
5. Afghanistan: Is It Time to Talk to the Taliban? — Jonathan Steele
4. Capital Markets Committee Proposes Blueprint for Compromise on Financial Reform — Hal ScottCan a Clearinghouse Really Stop the Next Financial Crisis? — Mark Roeand How to Avoid a “Bailout Bill” — John B. Taylor
3. High-Tech Death from Above: U.S. Drone Wars Fuel War Crimes — Tom Burghardt
2. Shadow Banking — Nomi Prins
1. Dems Break GOP’s Attempted Filibuster in the Senate, But Proposed Wall Street Reforms Are Pretty Flimsy — Zach Carter and A “Modest Proposal” for Capital Market Reform: Close Down Rule 144A — Jeff Madrick & Stephen Diamond
BONUS: Group Think — Steven Strogatz