The problem with going big on stimulus, as Biden is

Link: https://www.startribune.com/the-problem-with-going-big-on-stimulus-as-biden-is/600021428/

Excerpt:

First, wise public sector investments are better for the poor than one-time wealth transfers. The U.S. is still reaping the benefits of the great public health and public works achievements of the 20th century. Second, the most enduring and beneficial government-transfer programs, such as Social Security, have been built on sustainable majorities.

…..

It’s not as if there aren’t obvious candidates for alternative investment: green energy, broadband and public health infrastructure for the next pandemic, to name a few. Yes, I am familiar with the argument that spending the extra trillion or so now will make it possible to spend more trillions later, including on such policies. But whatever kind of complicated political story you might tell, the basic laws of economics have not been repealed. Increasing current expenditures does, in fact, involve foregone future opportunities.

Author(s): Tyler Cowen, Bloomberg Opinion

Publication Date: 10 February 2021

Publication Site: Star Tribune