Wednesday, September 1, 2010
Stimulus Spending Is "Hurting the Economy," Says Brian Wesbury
Chief Economist Wesbury makes some misguided statements here in a Yahoo! video. At one point he makes the statement that $1 of government spending actually results in less than that amount of economic activity.
He is almost corrected by one of the moderators who reminds him that the US government is actually borrowing a lot of the 'money' from the Chinese so it should not be as harmful to the domestic sector!
If you understand Modern Monetary Theory, this almost becomes like an old 'Abbot & Costello' skit.