Stimulus David Brooks Analysis

This was quite an interesting article to read. I believe that a stimulus was the best idea, and I agree with Gail Collins, although I think her argument waivered a bit toward the end and could have been a lot stronger. I believe a stimulus helps the economy, especially low-income people because they will spend the money on needed items, such as rent and food, whereas the rich are far more likely to save.

Many people think that cutting taxes is a better way to stimulate the economy, and do not believe in the stimulus. In the article, David Brooks said “Besides, I’m hung up on my lack of faith in the idea that stimulus actually works.” He did not give specific examples as to why, or why not, he felt this way, only giving his “impression”.

Toward the end of the article Gail Collins asked this: “I’d like some examples of countries that went into a recession, responded by trying to cut the budget, and were rewarded with a booming economy.” David Brooks avoided answering by asking his own question in response: “I’d like some examples of a country that was racing pell-mell toward fiscal ruin and improved its position by deciding to race faster to fiscal ruin.” This was another chance for him to state his side with specifics and he was unable to do so.

http://economistsview.typepad.com/economistsview/2014/02/paul-krugman-the-stimulus-tragedy.html

Another example of the potential role of government in the economy is education. The largest amount of money spent by both state and local governments is on education. This is because education creates external and social benefits, such as, lower unemployment rates and better economic