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Fiscal Stimulus, Job Creation, and the Economy: What Are the Lessons of the New Deal?

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Author Info
Greg Hannsgen
Dimitri B. Papadimitriou

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Abstract

As the nation watches the impact of the recent stimulus bill on job creation and economic growth, a group of academics continues to dispute the notion that the fiscal and job creation programs of the New Deal helped end the Depression. The work of these revisionist scholars has led to a public discourse that has obvious implications for the controversy surrounding fiscal stimulus bills. Since we support a new stimulus package—one that emphasizes jobs for the 9.8 percent of the workforce currently unemployed—we have been concerned about this debate. With Congress, the White House, pundits, and the press riveted on the all-important health care debate, we worry that they are also distracted by skirmishes over economic theory and history, while millions wait for a new chance to do meaningful work and effective, if imperfect, policy tools are readily at hand. (See also, Public Policy Brief No. 104.)

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Paper provided by Levy Economics Institute, The in its series Economics Policy Note Archive with number 09-10.

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Date of creation: Oct 2009
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Handle: RePEc:lev:levypn:09-10

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This page was last updated on 2009-11-30.


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