Press Release: Schansberg criticizes Baron Hill, Congress, President Bush for Stimulus Package

February 9, 2008

FOR IMMEDIATE RELEASE

Schansberg criticizes Baron Hill, Congress, President Bush for Stimulus Package

Dr. Eric Schansberg criticized the $167 billion “stimulus package” passed by the House and Senate on Thursday. President Bush had called for such a measure and has promised to sign the bill next week.

Schansberg, a Professor of Economics, said that it is not clear whether the economy is in a recession or even a significant economic slowdown. “There’s an old joke about economists—that we’ve predicted nine of the last five recessions”.

Even if we’re in a slowdown or a recession, the stimulus would probably be too late to be effective. Schansberg said, “Attempts to engage in fiscal policy are notoriously slow. It takes time to recognize a problem, to implement a solution, and to see the solution have its impact. In this case, the Treasury will be mailing out checks all summer long.”

Schansberg also questioned whether the plan is ethical. “Even if this would work, why is ethical to take money from the future taxpayers who will have to pay for it? The President and the Congress are, again, spiking the budget deficit and the national debt.”

On this, Schansberg singled out Baron Hill (D-IN) in particular—for his vote in favor of the package. “He likes to claim that he is a fiscal conservative. All I can say is that I appreciate his sense of humor about such things.”

Schansberg pointed to politics and the November election as the catalyst for the legislation. “Politicians are trying to buy our votes with the money of future generations. It will be interesting to see whether the public rewards them in November.”