Former CBO Chief: Short-term Stimulus Not Gonna Work
The former head of the Congressional Budget Office kicks Paul Krugman around on This Week, explaining why more stimulus is not the answer.
But what we’ve seen is again and again the same playbook, which is we want to focus on near-term stimulus. And if you look at measures, like the budget deficit, if the economy is at full employment, that’s still rising in 2011. That playbook’s been in place. It’s not working. It didn’t work in the ’60s and ’70s, when we used, again and again, to use stimulus to fine-tune the economy.
We need to have some permanent changes, like a lower corporate rate, tax repatriations for our business community. And he actually does have to show some respect for the business community. He needs small, medium and large businesses not to be the target of sort of class warfare rhetoric, but to be the focus of his policies.
Did you notice what a nervous little character Krugman is? He can't stand listening to someone else speak. Of course, Holz-Eagin is a former adviser to the McCain campaign, so it's surprising he was even invited on.