February 16, 2011

The Stimulus: Two Years Later

Russell Roberts

Affiliated Senior Scholar

In his testimony before the House Committee on Oversight and Government Reform, Russ Roberts discussed the second anniversary of the stimulus bill:

“We are told that the failure of the stimulus proves it simply wasn’t big enough to get the job done. But it is equally plausible that the opposite is true—that government intervention in the economy prevented the recovery.

The truth is that our knowledge of the complex system called the economy is woefully inadequate and may always remain that way. We ask too much of economics. Even our best attempts to measure the job impact of the stimulus spending make this clear.”