Thursday, January 22, 2009

So You Think the Government Can Spend Its Way Out of Our Current Predicament?

Even FDR's treasury secretary, Henry Morgenthau, said in 1939, "We have tried spending money . . . and it does not work . . . we have just as much unemployment . . . and an enormous debt to boot." Nor did a decade of infrastructure spending help the Japanese escape three recessions and a decade of stagnation. It did, however, saddle Japan with a national debt burden four times ours.

That's Mike Boskin from Stanford talking in today's WSJ, more here.

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