Quote Of The Day

“When people like Paul Krugman say that almost $900 billion in stimulus didn’t work because it wasn’t big enough, you have to wonder if an adequate Keynesian stimulus is even possible.  Could any government anywhere borrow 15% of GDP or more to spend on temporary measures with the blessing of their citizens?  For that matter, would the markets lend the money without ratcheting up interest rates?  Can an extra 15% of GDP be spent without showing sharply diminishing returns–meaning that you’d need even more spending to generate the effects you want?” — Megan McArdle

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