More Stimulus Discussion for the Soul (Can You Take It?!?)

I apologize, but it seems this blog is rapidly turning into the stimulus-only blog. I'm sorry, though, I find the debate to be absolutely stimulating. (ha!)

Anyways, here's a link to thoughts on stimulus from economists Jeff Miron, Simon Johnson, Mark Thoma and Russ Roberts. Concluding paragraphs from each:

Miron: The case for additional stimulus is weak. If further stimulus occurs, it should focus on changes in policy that make sense independent of the recession. This means reductions in tax rates rather than increases in expenditure. Repeal of the corporate income tax would be ideal.

Johnson: Global crises need global responses. The Obama administration and current Congress recognized the challenge and stepped up in a sensible and responsible manner. Now they, and the rest of the G20, need to tackle the still urgent problem in our financial system, including the “too big to fail” banks. If this is not addressed — and progress so far is very limited and the prospects do not look good — we remain vulnerable to another debilitating crisis. And next time, we may lack the political will or credibility or luck to pull off another appropriate set of fiscal countermeasures.

Thoma: The fact is, the stimulus programs in place now are probably too small. At some point the private sector will have to sustain growth on its own, but we’re not there yet and we must maintain the stimulus effort in the interim.

Roberts: I think the Keynesian narrative is right about one thing — consumers lack confidence. The crucial question is whether a large increase in government spending financed with borrowed money that swells the deficit to $1.4 trillion is good for confidence or bad for it. No one knows the answer.

Anyone who reads this blog regularly knows I'm squarely in the Miron/Roberts camp, but I don't think any of these guys makes a particularly strong case. But this isn't due to lack of intelligence, in my opinion. It's much more, as Roberts put it, "no one knows the answer."

Note: I believe Thoma is the only trained macroeconomist in this group, but don't quote me on that...

(HT: Cafe Hayek)