Wednesday, July 8, 2009

A Second Stimulas?

I'm wondering if I'm the only one who finds this funny. Paul Krugman complains about how the people advocating for a second round of stimulus for the US have been largely shut out of the debate about what to do next with the stumbling economy.

Really? A guy who writes for the New York Times is complaining about, basically, selection bias in the media?

McArdle refutes his argument pretty clearly, and without appealing to the incredible sense of irony I pointed out above.

The reason there is no debate about a second round of stimulus is that the Democrats in Congress who created the first stimulus don't even want to touch it. Right now, they know they are going to get hammered over the national debt in 2010 and probably in 2012 as well, so they are trying to decide what major spending plan they could most easily defend when its election time: national healthcare, more climate stuff, or more stimulus money.

It certainly won't be the third option, because while healthcare would possibly help the poor and middle classes (where the D's get the most votes) and they can try to make a case that climate issues help everyone (an argument not at all based in reason, but whatever), the reality is that the first stimulus didn't make the big splash they wanted and a second effort like that will only make things worse.

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