Dr. Robert Barro is an economist from Harvard and had this to say about Obama’s stimulus bill (emphasis mine):

This is probably the worst bill that has been put forward since the 1930s. I don’t know what to say. I mean it’s wasting a tremendous amount of money. It has some simplistic theory that I don’t think will work, so I don’t think the expenditure stuff is going to have the intended effect. I don’t think it will expand the economy. And the tax cutting isn’t really geared toward incentives. It’s not really geared to lowering tax rates; it’s more along the lines of throwing money at people. On both sides I think it’s garbage. So in terms of balance between the two it doesn’t really matter that much.

The article also had a nice graph to show how bad this economic crisis is compared to the 1970s and 1980s. Obviously, things aren’t as bad as they were then but, all this government spending will cause a tough recession to turn into a depression.

Now that the stimulus bill has passed and the politicians can spend money on all kinds of useless and unproductive things, we just might see a recession in line with the 70s or 80s–even the 30s.

I originally saw this article on LewRockwell.com, brought to attention by Joseph Salerno of Pace University.

By Tommy Leung

Tweet

Tags: economic crisis, harvard, obama stimulus, robert barro, salerno

You can leave a response, or trackback from your own site.