In several major papers today, Cato Institute is running this ad. It takes issue with Obama’s statement that everyone agrees that there is a need for increased federal spending, with dozens of good economists signing. Mike Munger of Duke is among them.
This is an excellent start, but there’s much more to be done. I hope that Cato and other groups will figure out how to explain in simple terms why increased federal spending can only shift resources from productive, market-determined ends into usually unproductive, politically-determined ends. Most if not all of those who signed the ad can do that.
What we should aim at is a widespread public perception that the so-called stimulus package is actually an economic depressant.
