Skepticism on Stimulus

A quadfecta of recent links from Greg Mankiw's blog remind us of the importance of healthy skepticism concerning the current stimulus bill being discussed in Congress:

* February 2 - a lot of money is going to be wasted, such as on school districts with declining enrollments and empty buildings

* February 2 - hasty short-term government spending can lead to higher levels of long-term government spending

* February 2 - "Buy America" stipulations can result in reduced employment impacts

* February 1 - government intervention likely prolonged the Great Depression

Of course, with every day comes new waves of bad news, and politicians of all stripes, looking ahead to their next election, are itchy to be seen as "doing something." Here's hoping that whatever the "something" ends up being doesn't bring us even more pain or make it last even longer.
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