Sunday, August 01, 2010

The Benefits of Government Intervention in the Economy

This NYT summary of a study by the economists Alan Blinder and Mark Zandi is clear:
In a new paper, the economists argue that without the Wall Street bailout, the bank stress tests, the emergency lending and asset purchases by the Federal Reserve, and the Obama administration’s fiscal stimulus program, the nation’s gross domestic product would be about 6.5 percent lower this year.
As the Times asserts "the government’s sweeping interventions to prop up the economy since 2008 helped avert a second Depression."