How Well is that Stimulus Package Working?

by Pejman Yousefzadeh on August 9, 2010


So well, that the Federal Reserve seems set to downgrade its assessment of the U.S. economy.

I have no problem, by the way, with the Fed’s likely move towards further easing; I supported Robert Lucas’s call for such a move in writings like this one. I certainly wish that we relied more on the Fed to help jumpstart the economy, as its actions would have had a greater and more palliative effect than a Congressional stimulus package has had.

  • Rich_Rostrom

    I object to the abuse of the tem “jumpstart”.

    One can “jumpstart” the motor of a car or truck, because the motor is a complete system designed and precisely manufactured for self-sustaining operation, with all required lubricants and coolants present, and fuel supplied. Only starting current is absent.

    A regional or national economy has some self-sustaining aspects, but it is not a designed system all ready to go. The “jumpstart” metaphor” grossly distorts the requirements of a healthy, growing economy.

    There is one other problem. An engine requiring a jumpstart is stopped dead. No economy ever stops dead except in external disaster conditions.

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