30 October 2010
Mr. James Fallows
National Correspondent, The Atlantic
Dear Mr. Fallows:
This afternoon on National Public Radio you proclaimed that “there is essentially no disagreement whatsoever” among economists that more stimulus spending is necessary today [emphasis in the original].
You are misinformed.
Last year, hundreds of economists signed a petition, circulated by the Cato Institute, whose key clause reads “it is a triumph of hope over experience to believe that more government spending will help the U.S. today.” Among the economists who signed this petition in opposition to ‘stimulus’ spending are three Nobel laureates in economics (Edward Prescott, Vernon Smith, and my colleague James Buchanan). Others signers include Chicago’s Eugene Fama and Sam Peltzman, Harvard’s Jeffrey Miron, Texas A&M’s Thomas Saving, Cornell’s Rick Geddes and Dean Lillard, University of Virginia’s Lee Coppock and Kenneth Elzinga, Duke’s Michael Munger and Edward Tower, University of Rochester’s Mark Bils and Ronald Schmidt, Rutger’s Michael Bordo and Leo Troy, University of Southern California’s John Matsusaka and Kevin Murphy, and one of the world’s preeminent scholars of money and banking, Carnegie-Mellon’s Allan Meltzer.
Perhaps these economists and the many others who’ve signed this petition (including myself) – and who continue to speak out against what we believe to be the folly of ‘stimulus’ – are mistaken. But for you to announce publicly that there is “no disagreement whatsoever” among economists that more stimulus spending is desirable is so wildly inaccurate that it borders on being irresponsible.
Donald J. Boudreaux
Professor of Economics
George Mason University
Fairfax, VA 22030