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Cato Leads Opposition to Fiscal Stimulus
In reaction to statements from Obama administration officials who say “all economists agree” that the only way to fight the economic recession is to go on a massive government spending spree, the Cato Institute took out a full page ad in the nation’s largest newspapers that showed that those words were not true. Signed by more than 200 economists, including Nobel laureates and other highly respected scholars, the statement was published this week in The New York Times, The Washington Post and many other publications.
On the day the ad ran in The New York Times, Cato executive vice president David Boaz added more names to the list of economists who are skeptical of the spending bill.
Commenting on the principles behind the stimulus, Cato adjunct scholar Lawrence H. White and fellow economist David C. Rose discuss why we can’t spend our way out of this mess:
You can’t solve an excessive spending problem by spending more. We are making the crisis worse.
In The Wall Street Journal, Cato senior fellow Alan Reynolds examines the numbers and discovers that each government job created will cost taxpayers a staggering $646,214 per hire.