I have been spending time looking at the Romer data regarding the economy especially unemployment projections. The graph below compare her latest projections as compared to what she stated in January with and without the Stimulus.
The top line is her latest projections. Her comments should be on concern. If the Stimulus has had its maximum effect and if she continues to project unemployment well above 9% then why spend more Stimulus money, for it is clear that the data she and her husband had analyzed in detail a year before she took her position was correct, Government funding has little effect.
Another issue is given the wide variation in her projections, why should anyone believe anything she says? If a CFO of GM made these projections he or she would be fired. Why not Romer?
The question is what game is being played here. Does she have any belief in any of the numbers she presents or are they all fabrications of the White House. Is this just another grab for spending more money?
Furthermore in January she projected out thru 2014, now she is doing so only to 2014. Perhaps the Academic is being cautious.
The top line is her latest projections. Her comments should be on concern. If the Stimulus has had its maximum effect and if she continues to project unemployment well above 9% then why spend more Stimulus money, for it is clear that the data she and her husband had analyzed in detail a year before she took her position was correct, Government funding has little effect.
Another issue is given the wide variation in her projections, why should anyone believe anything she says? If a CFO of GM made these projections he or she would be fired. Why not Romer?
The question is what game is being played here. Does she have any belief in any of the numbers she presents or are they all fabrications of the White House. Is this just another grab for spending more money?
Furthermore in January she projected out thru 2014, now she is doing so only to 2014. Perhaps the Academic is being cautious.
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