Heh. Jonathan Chait writes of the chart that I am sure I have seen at Catallaxy (I think posted by S Davidson himself?):
As I noted before, we can’t prove that the stimulus reduced unemployment because we can’t
measure exactly what unemployment would have looked like otherwise. But the talking point that the stimulus failed because unemployment exceeded the forecasted level is not a serious argument. No reasonably informed person could take it seriously. And yet this blunt and easily refuted bit of propaganda continues to circulate seven years later within the airless bubble of the conservative echo chamber.
I only wrote the other day if sinkers was in charge of fiscal policy GDP would fall for the year!
ReplyDeleteStagflation is not too good at fiscal policy at all.