Krugman: Real Stimulus Would Be Government Spending

12/01/2008 05:12 am ET | Updated May 25, 2011
  • PAUL KRUGMAN New York Times

No, what the economy needs now is something to take the place of retrenching consumers. That means a major fiscal stimulus. And this time the stimulus should take the form of actual government spending rather than rebate checks that consumers probably wouldn't spend.

Let's hope, then, that Congress gets to work on a package to rescue the economy as soon as the election is behind us. And let's also hope that the lame-duck Bush administration doesn't get in the way.

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