This is an opinion item.
| Author(s)
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Alan Reynolds
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| Source
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The Wall Street Journal
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| Date
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January 28, 2009
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| URL
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http://online.wsj.com/article/SB123310498020322323.html
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| Quote
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"In short, a growing body of evidence suggests that a dollar of extra spending is likely to lift nominal income by less than a dollar, arguably much less. Several studies suggest the multiplier may be less than zero after a couple of years, because private investment (including housing) eventually falls by more than government spending rises. Another $550 billion of deficit spending on top of a deficit already above $1 trillion is likely to prove more dangerous than helpful to an economy already overloaded with risky debt."
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This item argues against the position Act should be passed on the topic American Recovery and Reinvestment Act of 2009.
