Stimulus Surprise: Companies Retrench When Government Spends

[EN81]

New research from Harvard Business School suggests that federal spending in states appears to cause local businesses to cut back rather than grow. Shocking!

Stimulus Surprise: Companies Retrench When Government Spends

Some of the dollars directly supplant private-sector activity—they literally undertake projects the private sector was planning to do on its own.

It appears Harvard business intellectuals are starting to grasp some of the economic common sense from Hazlitt's "Economics in One Lesson". Is this what it feels like to watch a child take its first steps?

 

[Knightskye]

I'd love to see Krugman or other keynesians respond to the study.

http://www.people.hbs.edu/cmalloy/pdffiles/envaloy.pdf

 

[ItsTime]

I'd love to see Krugman or other keynesians respond to the study.

http://www.people.hbs.edu/cmalloy/pdffiles/envaloy.pdf

Call the study crack pot and throw them under the bus?

 

[hugolp]

Call the study crack pot and throw them under the bus?

Or say its a right wing study therefore false.