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.