Damn. Cato took out full page ads this week in The New York Times, Washington Post, and Roll Call objecting to Obama’s claim that “There is no disagreement that we need action by our government, a recovery plan that will help to jumpstart the economy.” The ad is signed by some 200 economists and reads:
With all due respect Mr. President, that is not true.
Notwithstanding reports that all economists are now Keynesians and that we all support a big increase in the burden of government, we do not believe that more government spending is a way to improve economic performance. More government spending by Hoover and Roosevelt did not pull the United States economy out of the Great Depression in the 1930s. More government spending did not solve Japan’s “lost decade” in the 1990s. As such, it is a triumph of hope over experience to believe that more government spending will help the U.S. today. To improve the economy, policy makers should focus on reforms that remove impediments to work, saving, investment and production. Lower tax rates and a reduction in the burden of government are the best ways of using fiscal policy to boost growth.
On the other hand, Obama’s plan persuaded Cato to inject much-needed revenues into the struggling print journalism industry, so he’s got that going for him.
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Jacob Grier is a freelance writer, barista, mixologist, and magician in Portland, OR. He writes, eats, and drinks a lot. His articles have appeared in The Washington Post, Reason Online, The Oregonian, and other publications.
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