MORE STIMULUS, ANYONE? Should Washington order another hefty round of Keynesian deficit spending in order to spur the limping US economy?
Absolutely, say many prominent economists.
Peter Diamond, a 2010 recipient of the Nobel Prize for Economics, argues in favor of "pursuing valuable expenditures now," by subsidizing state and local government payrolls and pouring money into "a vast amount" of construction projects. "Between the error of doing too little and doing too much," Diamond says, "doing too little seems to me to be the much greater risk." Joseph Stiglitz, another economics laureate, agrees: "We will see in the next two years the real cost of there not being a second round of stimulus," he told the Society of American Business Editors and Writers. "We will see the economy slow down at a very high economic cost."
So a big new stimulus package is the way to go?
Absolutely not, say many prominent economists. . . .