Why Keynesian stimuli aren’t working

posted by
September 8, 2011
Freedom Politics
by Nick Gillespie  
Posted in Commentary

"There are many reasons to doubt that the multiplier exists at all and if it does, it certainly isn't at the levels the Obama administration has claimed. As Reason's economics columnist Veronique de Rugy has pointed out, the administration claimed that one dollar of government spending would create as much as four dollars in economic activity while other economists were coming in with multipliers of between 0.8 and 1.2, meaning that each dollar of government spending might yield just 80 cents to $1.20 in activity." (09/07/11)


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