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"The stimulus was just too small!"

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Sam29 posted on Sat, Jul 16 2011 6:28 PM

We all know that Krugman and he Keynesians will use his ad infinitum to explain why we are still in the crapper economically with 9.2% unemployment. I have been reading Bob Murphy a lot lately, as he spends a lot of time talking about it, but does anybody else have an interesing take on how to respond to the "stimulus was too small" camp?

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Top 75 Contributor
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have you checked out Krugman-in-Wonderland ?

My Blog:

Production is 'anarchistic' - Ludwig von Mises

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Kaiser replied on Sat, Jul 16 2011 8:13 PM

"And the Nazis say the Holocaust was too small."

"I know that it is a hopeless undertaking to debate about fundamental value judgments."-Albert Einstein

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Spouses complain about small stimulus all the time but that doesn't necessarily represent an increase in demand for more stimulus.

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Suggested by ThatOldGuy

The stimulus being too small does not solve the necessary theoretical problems with stimulus and Keynesian style spending in the first place. The simple fact is that stimulus spending wastes scarce resources and hampers the readjustment process of the market. It does not solve the issue in the long run it only improves the problem in the now for certain people. The issue should not be over whether or not the stimulus was too large or small, but whether or not stimulus should exist at all, if this issue is dealt with then one can decide if the stimulus was too small (which would be indicated if the economy is at less than full employment and one believes that stimulus spending is positive) or too large (which would be any size if one believes that stimulus spending does not rectify or harms recovery)

At last those coming came and they never looked back With blinding stars in their eyes but all they saw was black...
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