One of the statists? favorite economists,
Joseph Stiglitz, offers his prescription for the ailing economy in the latest issue of Money magazine. The article is not yet posted online, but you can get a sense of the tenor of Stiglitz?s remarks from the headline: ?Why the Bailout Needs a Reboot.?
Here?s a key passage:
Hasn?t the passage of the stimulus package in the wake of the credit crisis helped at all? It has worked. But it was too small. And too much of it was in the form of tax cuts.
Aren?t low taxes good for growth? They are not strong enough. The point of the stimulus was to increase spending in a hurry to shore up aggregate demand.
Stiglitz says ?a better way of getting money into the system is to fill in the gaping holes in state budgets.?
We can improve the economy by rewarding profligate state governments for their inability to spend within their means? Hmm.
If you doubt that Stiglitz?s ideas make sense, you?re more likely to agree with the sentiments John Hood shared during his address Thursday at the Winston-Salem Tea Party:
