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Robert Barro Discusses the Issues with Fiscal-Stimulus Packages

By: Sophia Pelka - Published: Feb 22, 2012 • References: rbarro & youtube
Robert Barro is considered a founder of the new classical macroeconomics. Barro was named the fourth most influential economist in the world as of August 2011 after contributing to the Research Papers in Economics.

Barro shares his disagreement for stimulus spending and the disadvantages of having such a bill. He argues that the form of the taxation is alright for raising revenue, but is not efficient. It causes the government to grow larger, and in turn spend more. However, there is very little way around the entitlement programs, nor is there a better alternative for gaining revenue. He ends with a statement by Larry Summers on why Fiscal-Stimulus packages are controversial, stating that "democrats thought it was regressive and republicans thought it was a money machine." Stats for The Two Faces of Taxation Trending: Older & Chilly
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