Liberal Economists Skeptical of Obama Stimulus Package
Despite the fact that President-elect Obama described his stimulus package on Thursday with only broad generalities, the proposal is already coming under criticism from economists on the left. Anxiety that the package is too small is combined with a fear that the rumored $300 billion in tax cuts for individuals and corporations will do little to jump-start the economy. They argue that Obama, in seeking a solution that Republicans on the Hill will support, has sacrificed key components that would make the package work most effectively.
Paul Krugman, Nobel Laureate and in-house economic lefty for the New York Times, wrote on his blog this week: