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Economists Agree: "Relief" and "Stimulus" Are "Succeeding"
A good definition of wisdom: "The right use of knowledge."

By Robert Folsom
Fri, 14 Nov 2008 17:30:00 ET
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I know that The Wall Street Journal's regular "Forecasting Survey" of economists isn't meant to provide comic relief. I also know that it usually does anyway.
 
Front and center in the November survey results (published today) are answers from 54 big-name economists to this question:
 
"Is the Troubled Assets Relief Program [TARP] succeeding in helping the markets?"
 
TARP is the $700 billion bailout that managed not to provide a dime's worth of relief to any troubled asset anyplace on earth. Even so: 63% of the economists in the survey said "Yes" to the question.
 
Another relevant question was this gem:
 
"Should there be another economic stimulus package in January even if one
is passed before the end of the year, and if so what should it include?"
 
Note carefully how the question is phrased -- the word "another" is a reminder of the first stimulus package, passed in February of this year to the tune of $150 billion. The question also allows for the passage of a second stimulus before January, which means it's actually asking if there should be a third stimulus package: 82% of the economists in the survey said "Yes" to the question.
 
Here's a question that was NOT asked (never mind answered) in the survey.
 
"If these provisions by the government are succeeding in an effort
 to bring economic relief and stimulus, then why does the economy
itself look like a textbook case of failure, stress and suffocation?"
 
Yes, it's easy to be on the outside looking in at policymakers, calling their decisions into question. But at what point is it fair to say, "Aren't you just doing more of the same stuff that obviously hasn't been working?" When is it fair to observe that, "To do the same thing over and over and expect a different result means you're insane?"
 
You can't stop insanity in others, and neither can we. What you CAN do is be wise -- and my favorite definition of wisdom is "the right use of knowledge." Knowledge is what we offer, and our subscribers have been able to use it well indeed. See the difference for yourself. Click here to learn more.

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