Goolsbee: “Cash for Clunkers” a Mistake

by Crocker on October 22, 2011, 2:40 pm

in Economics,Politics

Austan Goolsbee is one of the president’s former economic advisers (count ’em as they stream to the exits). Recently, he made an entirely predictable confession of sorts that both the “cash for clunkers” and home-buyer tax credit programs were a mistake. Do tell. I expressed my disgust for the “clunker” program more than two years ago.

Short-term gimmicks do nothing but unsettle the economic scene and are no substitute for the sort of steady policies needed in an economic crisis (like reduced taxes and government spending and insuring an adequate but not excessive money supply). That way our betters don’t scare the bejesus out of the very people we need to get things moving – that is, ordinary folks who buy, sell and spend.

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