The Corner

More Evidence That the Stimulus Didn’t Work

Writing in the Wall Street Journal this morning, economists John Cogan, John Taylor, and Volker Wieland explain that the data shows that government transfers, rebates, and spending did not increase consumption. In other words, the stimulus is not stimulating the economy. They write:

Incoming data will reveal more in coming months, but the data available so far tell us that the government transfers and rebates have not stimulated consumption at all, and that the resilience of the private sector following the fall 2008 panic–not the fiscal stimulus program–deserves the lion’s share of the credit for the impressive growth improvement from the first to the second quarter. As the economic recovery takes hold, it is important to continue assessing the role played by the stimulus package and other factors. These assessments can be a valuable guide to future policy makers in designing effective policy responses to economic downturns.

They have a chart:

Rebates Fail to Jump-Start Consumption

We have seen this chart before. In fact, it looks just like what happened with president Bush’s 2008 stimulus plan. So I guess, it’s worth repeating it again: Stimulus spending never works.

More here and here.

Veronique de Rugy — Veronique de Rugy is a senior research fellow at the Mercatus Center at George Mason University.

Most Popular

U.S.

Political Theatrics

EDITOR’S NOTE: The following is Jonah Goldberg’s weekly “news”letter, the G-File. Subscribe here to get the G-File delivered to your inbox on Fridays. Dear Reader (Including all you whippersnappers under the age of 50), I’m writing this from somewhere over the Atlantic. At least I hope that’s ... Read More
World

The Real Reasons American Evangelicals Support Israel

It never fails. Whenever a Republican president makes a controversial or contentious move to support Israel -- such as moving the American embassy to Jerusalem, or yesterday’s decision to recognize Israeli sovereignty over the Golan Heights -- you’ll see various “explainers” and other stories that purport ... Read More
White House

Mueller Report Delivered to Attorney General

Special Counsel Robert Mueller on Friday evening delivered a report to attorney general William Barr detailing his nearly two-year investigation into Russian interference in the 2016 election and possible collusion with the Trump campaign. Barr will now be tasked with deciding what information from the report ... Read More