Tuesday, July 01, 2014

Top Economist Claims Obama Stimulus Failed : $3.40 of output is lost eventually for every dollar of increased government spending



American Economic Review has University of Chicago's Harald Uhlig stunning research:
$3.40 of output is lost eventually for every dollar of increased government spending. By contrast, for a tax cut and each discounted dollar given up in terms of taxing labor, one obtains an increase of $2.40 in discounted output eventually.
Exposing the fraud of Keynesian economics and the myth of the multiplier. Just a reminder , this one of the top journals in economics written by the current Head Editor of the Journal of Political Economy.