Tuesday, February 19, 2008

Score one for the Austrians

Remember when I invoked the Austrians and their belief that Keyensian attempts at spending our way out of recessions are too slow and actually end up being useless in the short-term and harmful in the long-term? Well, here's some data supporting that claim. Executive summary: in more than a dozen attempts, stimulus packages have either never, or almost never pulled the US economy out of recession.

So, what am I going to do with my stimulus check? I'm not sure. Any idea if there's a prediction market out there where I might go long on lottery tickets and short on economics textbooks?

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