I must say I can't disagree with Prof. Schaff's diagnosis of what's wrong with the idea of a stimulus package. The Republican Study Committee also offers criticism of the stimulus plan. In addition, basic economics tells us that economies run in fluctuations and there will be boom times and low points. Economic news coverage tends to exaggerate changes in the economy and blow them out of proportion, creating an atmosphere that demands government action for the supposed gigantic changes that occur. There are limits about what you can do with recessions, and trying too hard to halt one might cause more problems than letting it run its course.
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