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The Stimulus Didn’t Work

Economists John Cogan, John Taylor, and Volker Wieland have an opinion piece in today’s Wall Street Journal in which they have analyzed recent economic data and concluded the recent federal government stimuls plan did nothing to increase consumption or economic growth. 

A couple of questions arise from their conclusion:  1) what will be the impact on the economy be when the federal government has to raise taxes or cut spending to pay back the principal and interest on the $797 billion stimulus bill?  2) will the same economists who said the stimulus would create millions of jobs be the ones who will judge whether any health care reform bill passed by Congress will or will not add to the deficit?

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