Evaluating Government Stimulus

Marginal Revolution has the goods: Chris House on stimulus spending.

All programs should meet the cost/benefit calculation. Many object to such calculations to start with. Chris House’s post is addressed who think that the calculation should be changed when fiscal stimulus is necessary. Concerning the classic hole digging hypothetical, it’s pointed out that the world would be better if you just paid the individuals, instead of paying them to do useless work.

 
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