Morning Commentary (Feeling Angry)
By Arnold Kling
Three things to be angry about this morning.
2. Alan Blinder and David Leonhardt confusing stimulus with class warfare. They say that we need to get money into the hands of the consumers who are most desperate to spend it. Their folk Marxism blinds them to the fact that the key to recovery is actually business profits, which are in much worse shape than consumers. Blinder argues against business tax cuts, as if businesses don’t spend.
3. Since when is Mark Zandi a stimulus expert? Oh, I know why he got the label. First, he is giving answers that the Democrats want to hear. Second, he is giving precise numbers, like multipliers of 1.73. But any competent economist would be responding to people who ask for estimates of multipliers by saying, “I don’t know, but I think the right ballpark is…” or “These are just guesses.”
There is no such thing as a “stimulus expert.” I hereby throw my shoe at Mark Zandi.