Economists do not have an accurate or agreed-upon model of the short-run economy, and their advice is often in error. Politicians should be more humble about their ability to control short-term economic ups and downs. Legislative action based on incomplete information risks destabilizing the economy further. Efforts to fix short-term problems often create long-term damage such as by putting the nation further into debt.
Chris Edwards appeared on C-SPAN’s Washington Journal recently to discuss the “stimulus package” proposed by President-elect Obama.