In the fall of 2007, when the U.S. economy first seemed in peril, I began answering reader queries here on the Business Desk. I still do so occasionally, but this page has expanded to include posts from eminent economists, "far-flung correspondents," and a variety of voices that have intriguing and/or useful things to say about economics, broadly defined. Please feel encouraged to respond to any and all of them.
If deficit spending stimulates the economy then won't imminent plans to wind down the war and trim spending offset any stimulus packages?
City & State:
Question/Comment: If deficit spending stimulates the economy then won't imminent plans to wind down the war and trim spending offset any stimulus packages?
Paul Solman: Hmmm, interesting point: an argument for continuing the war might be its stimulating effects. Consider, however, that much of the money goes for expenses outside the U.S., which does the U.S. economy no good at all.
As to the trimming of spending, yes it would offset any stimulus -- if it had the slightest likelihood of happening.