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Monday, July 13, 2009

Is the stimulus too much, too late?

Mark Perry at Cafe Diem looks at Bruce Bartlett's study of stimulus spending:

Most of the fiscal stimulus spending will likely impact the economy when it isn't really needed, i.e. after the economy has already started to recover. If we have positive economic growth yet this year in the third (.60% real GDP) and fourth quarter (1.9%) like economists are predicting (WSJ survey, see chart above), and 2.6% real GDP growth next year, the fiscal stimulus will be stimulating an economy in recovery, i.e. an economy that doesn't need stimulus. (more)

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