“Greenspan: Fiscal Stimulus Worked Far Less Than Expected”

“The former head of the Federal Reserve said fiscal stimulus efforts have fallen far short of expectations, and the government now needs to get out of the way and allow businesses and markets to power the recovery.

“We have to find a way to simmer down the extent of activism that is going on” with government stimulus spending “and allow the economy to heal” itself, former Fed Chairman Alan Greenspan told a gathering held at the Council on Foreign Relations in New York on Wednesday.

At this point, “we’d probably be better off doing less than more” because “you’d be far better off to allow the normal market forces to operate here,” Greenspan said. That’s largely because stimulus spending is not proving as effective as many had hoped.” Read more

“Greenspan: Fiscal Stimulus Worked Far Less Than Expected” 
Michael S. Darby 
The Wall Street Journal, September 15, 2010. 

Image by graur codrin / FreeDigitalPhotos.net.

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