WSJ survey: Economists say no to another stimulus

Just quite rightly so.

Apparently, Democrats are the ones pushing for another stimulus.  In WSJ’s survey, only 8 out of 51 economists are in favor of a new stimulus.  But the remaining 43 are smart enough to think it isn’t necessary. An excerpt from the news:

Most economists appear content to take the wait-and-see approach, as on average they are expecting the just-ended second quarter to be the last in which gross domestic product contracts.

More than one-third of respondents said the government package would have only a small effect on the economy, while 6% said the stimulus has hurt the economy.

They believe money given to consumers will just be saved, contributing not to spending but to the savings glut.

More HERE.

If some people are already questioning the effect of the first stimulus and criticizing it for its rather late display of effects, I seriously cannot imagine how a second one would help.  Sure it might help to boost demand even a tad bit, but it’s not what is needed.  What the economy, any economy needs at the moment is sustainable, not one-time demand.  The $600bn in additional funds in the minds of the 8 economists will just go down the drain, to waste.  It will not be used, it will not spark recovery.

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