THE writers of the Wall Street Journal's editorial page seem to have their own special brand of economics (emphasis below is mine):Granted, I think one could do an item a day about the WSJ's use of "quotation marks," but still that's a nice one.
The recession preceded Mr. Obama's Inaugural by 13 months, according to the National Bureau of Economic Research, and so did the President's fiscal policy ideas. George W. Bush got there first. In February 2008, he and House Speaker Nancy Pelosi agreed on a $168 billion combination of federal spending and temporary tax rebates that were supposed to maintain growth through the housing market decline that election year."Demand", indeed! I suppose this makes the Journal's errors of analysis a bit easier to understand. They've only got one line on their charts!
Larry Summers, who would later become Mr. Obama's chief economic adviser, made the case for such a stimulus to boost domestic "demand" in late 2007.
Tuesday, September 7, 2010
The Economist's R.A. (via Yglesias):