Tuesday, March 2, 2010

Professor Glaeser Confirms that the "Stimulus" was Poorly Targeted

The law gives the most per capita to states with the least unemployment. Read more here.

added: The White House appears to read economix, and yesterday offered a rebuttal of Professor Glaeser's critique.

As you know, I write weekly at economix, so we can understand the White House's complete silence regarding my critiques to mean that they do not have much to say:

Obviously, they agree with "Who's Afraid of the Big Bad Deficit?" and "More Government Debt, Please."

In case you are wondering where else the CBO went wrong, look here. In short, they completely ignore incentives even while a long economics literature has shown that they have real effects, even in recessions.

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