Will the stimulus actually stimulate? Economists say no

The compromise economic stimulus plan agreed to by negotiators from the House of Representatives and the Senate is short on incentives to get consumers spending again and long on social goals that won't stimulate economic activity, according to a range of respected economists. Full Story »

Posted by Derek Hawkins
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Posted by: Posted by Derek Hawkins - Feb 13, 2009 - 1:19 AM PST
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Edited by: Derek Hawkins - Feb 13, 2009 - 1:19 AM PST
Jim Lang
3.0
by Jim Lang - Feb. 13, 2009

This is an article that focuses on the nay-sayers with an opionated boost from the writer. The focus is on those economists favoring tax policy. The supposed negative comment from the "center-left" representative is really a call for getting on with the "bank-rescue" plan in tandem. Skeptics deserve to be heard but the large number of economists supporting the stimulus approach or urging greater spending and less tax relief shouldn't be ignored in such an analysis.

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Dan Kennedy
2.3
by Dan Kennedy - Feb. 13, 2009

Though I agree with other NewsTrust reviewers that this is a rather thin, weak analysis, I do think it's true that most economists, whether liberal or conservative, don't like the stimulus plan. Here's an assignment for someone: Find a few good economists who like it, and explain why.

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Chris Finnie
1.5
by Chris Finnie - Feb. 13, 2009

So the right wing doesn't like a Democratic stimulus plan? Now there's a news flash! The one "center left" economist he quotes says it will work, he just doesn't think it's enough. This is far below what I expect of McClatchy which has, in the past, done some good work. It should certainly be presented as opinion, which it doesn't seem to be.

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Peter L. Combs
2.9
by Peter L. Combs - Feb. 13, 2009

Not much of a journalistic workout. Some sourcing, nothing new regarding the oppositions view on the bailout. Re-Iterates the weaknesses of the Bailout which is well understood already by most.

No credible economist has yet said the Bailout WILL work...they say "we think/hope it will help, but we have to do something"... If they could show ONE example of one that did for an ENTIRE economy..we'd all like to see it..WWII and 12 years fixed the depression..hardly a fix..

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Dale Penn
2.4
by Dale Penn - Feb. 13, 2009

The title is misleading: "Economists say no" - but wait a minute don't some economists yes? The title could easily be interpreted to mean that there is a consensus among economists on this matter. Rocky start. The sourcing is weak at best and seems biased toward the author's thesis. Galston of the Brookings Institution is not an economist at all (see links William Galston & "The Audacity of Data"). Feldstein is called an "early supporter" of the plan (see Feldstein article link from last year saying the plan won't work). Sourcing includes two conservative economists (Riedl-Heritage Foundation, Feldstein - Reagan advisor), Felstein still supports the stimulus package, although he is disappointed in it, so that's ... More »

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Patricia L'Herrou
2.9
by Patricia L'Herrou - Feb. 13, 2009

although the headline is quite misleading, the story does show that even those who want this bill are not thrilled with it, as too either much was compromised during the process of obtaining any republican votes, or they just don't believe it's really enough money spread around to make it work.. there's no sources here that discuss the parts of the plan which is expected to create jobs, either shorter or longer term, which is a large part of the bill. also many opinions, such as 'serious observers' and 'some analysts' are not sourced at all.

two things seem true: without knowing what will happen with the rest of the tarp to get credit moving it seems impossible to predict how effective the money in this bill will be, and , it is necessary for the government to spend quite a lot of money to keep us from a very deep dive into the depression. in spite of it's clear flaws, this story does help convey this.

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Derek Hawkins
2.4
by Derek Hawkins - Feb. 13, 2009

Disorganized, poorly written, disingenuous. I get the impression the reporter went out of his way to find economists who rejected the stimulus plan. No attempt at getting a diversity of perspectives. An inconsequential story, atypical of McClatchy.

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