Last Friday, a group of 222 economists publicly rejected the Administration’s view that we need to “spend our way out of this recession,” instead insisting that officials focus on solutions that emphasize the free market.
In their statement, the troupe of economists – hailing from a number of prestigious universities, including Harvard, George Mason, and Rice – warn that:
The country’s economic future depends on Congress’ ability to rein in the growth of federal spending. Failing to restrict spending growth will further balloon the national debt, impede economic growth, and threaten the long-term economic health of our Nation. Controlling spending growth to reverse our dangerous debt accumulation can be done without endangering the near-term economic recovery, and will prove beneficial over the longer horizon.
The 2009 near-term “stimulus” has proven to be an inefficient spur to job creation and does not merit repeating. Any further policy efforts should be focused on opening borders to free trade, cutting burdensome regulations, and providing necessary tax relief to employers and employees.
The growing chorus of academics and scholars calling for an end to the Keynesian policies of the Obama Administration is getting hard to ignore. Let’s hope officials in Washington are listening.
– James Quintero