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No, We Do Not Need More Fiscal Stimulus

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It’s a line you’re seeing with surprisingly frequent regularity: Ben Bernanke wants more fiscal stimulus. So does Peter Orszag. (Hat tip for these links goes, naturally, to Ezra Klein’s blog.) Advocates of incessant temporary infusions of cash into the pockets of low- to middle-income people in the hopes that they will go out and spend it and “spur demand” and thus create incentives for businesses to invest and expand and hire sound, to be quite frank about it, totally out of their minds. How many times must they be reminded that businesses invest (and banks lend) with an eye toward long-term
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