04 November 2009

Jobs "Saved or Created"

Nice little piece on the fatuous claim that Obama's stimulus package "saved or created" 640,000 jobs.
And a related post by Greg Mankiw.

Government efforts to goose the economy in the short term by creating artificial shifts in the demand curve to the right, when all market players know there's no "there" there, do not work. This popular version of Keynesianism is wrong (and, at least in part, misconstrued).

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