As the U.S. economy continues to “struggle to recover from the Great Recession,” writes Dartmouth’s Andrew Samwick in an opinion piece for U.S. News and World Report, a new approach to stimulus spending must be taken.
Samwick, the Sandra L. and Arthur L. Irving ’72a, P ’10 Professor of Economics and director of the Nelson A. Rockefeller Center for Public Policy and the Social Sciences, says the previous approach, which followed the mantra that fiscal stimulus should be “timely, targeted, and temporary,” was not successful.
“Rather than timely and targeted to private consumption and investment, fiscal stimulus needs to be sustained and targeted to long-lived public investment projects,” writes Samwick. “Most importantly, fiscal stimulus cannot be temporary. Temporary measures by the federal government do not boost expectations of future activity and thus do not improve asset values or motivate longer term investments by firms, households, or other investors.”
Read the full op-ed, published 11/30/12 in U.S. News & World Report.