Tuesday, March 13, 2012

Once Again an Advocate Of Stimulus Uses These Numbers

Dean Baker on the Financial Crisis mentions his support for fiscal stimulus.  

On the stimulus, I am willing to accept Dean's numbers that $300 billion/year saved/created 3 million jobs. That is $300 billion / 3 million jobs = $100,000 per job! Most of those jobs paying below $30,000/year! Why anyone would think that was a good policy based on those numbers I do not know!
I would think that it would be much better to try a combination of monetary expansion and replacing the minimum wage, some welfare and unemployment insurance with a wage subsidy.



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