[HT: Patriot Room]
Responding to President Obama’s statement that “there is no disagreement” that massive government spending is required to “jumpstart” the economy, the Cato Institute has been putting out ads calling him out on his fabrication.
President Obama says that “economists from across the political spectrum agree” on the need for massive government spending to stimulate the economy. In fact, many economists disagree. Hundreds of them, including Nobel laureates and other prominent scholars, have signed a statement that the Cato Institute has placed in major newspapers across the United States.
The actual ad, which can be found here, contains this gem:
Notwithstanding reports that all economists are now Keynesians and that we all support a big increase in the burden of government, we the undersigned 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, policymakers 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.
I am reading Amity Shlaes’ The Forgotten Man right now, and seeing the asinine actions taken by FDR, so similar to what Obama wants to do, made me an even stronger oponent of this pork spending package. Check out the Cato Institute’s take on this here.