President Obama did pass what media reports insistently called a “massive” fiscal stimulus, but it was in fact far too small, given the size of the financial shock.
That’s not 20/20 hindsight; I was tearing my hair out over the plan’s inadequacy in real time.
Or they didn’t want to work, maybe because the improving quality of video games was keeping them at home.
OK, but before I simply declare that inadequate government stimulus led to a lost decade for the U.S. economy, I need to address one objection from economic theory.
Conversely, if the economy persistently has excessive unemployment, the hypothesis says that we should see ever-falling inflation, perhaps eventually leading to deflation.
Persons:
Obama, insistently, belying, Milton
Organizations:
Obama
Locations:
Washington, U.S