Economists Oppose More Stimulus

WSJ ^ | 7/10/09

[FromLori]

Most economists believe the U.S. doesn't need another round of stimulus now despite expectations of continued severe job losses.

Just eight of 51 economists in The Wall Street Journal's latest forecasting survey said more stimulus is necessary, suggesting an average of about $600 billion in additional spending. On average, the economists forecast an unemployment rate of at least 10% through next June, with a decline to 9.5% by December 2010.

"The mother of all jobless recoveries is coming down the pike," said Allen Sinai of Decision Economics. But he doesn't favor more stimulus now, saying "lags in monetary and fiscal policy actions" should be allowed to "work through the system."

Like most respondents, Mr. Sinai said the bulk of the stimulus wouldn't be felt until 2010. When asked how much the stimulus has helped the economy, 53% of respondents said it has provided somewhat of a boost but that the larger effect is still to come.

[FromLori]

[Wally_Kalbacken]

That’s OK - with Christina Romer at the helm, ya got no complaints.

[BenLurkin]

Since it was going to take time anyway, why in the world didn’t DC spend the money on rebuilsing infrastructure? The economy and our nation would have reaped long term benefit from spending 1 trillion on building and rebuilding roads, bridges and powerplants.