Assuming that state Sen. Scott Brown wins the Republican nomination for the U.S. Senate on Dec. 8 (first he has to get by perennial candidate Jack E. Robinson), he’s going to have to show greater economic literacy than he has to date.
On Saturday, the New York Times quoted Mark Zandi — an economic adviser to Republican president candidate John McCain in 2008 — as saying that the $787 billion stimulus has created or saved 1.1 million jobs. If anything, Zandi added, the stimulus should have been bigger.
And Martin Feldstein, a top economic adviser to President Ronald Reagan — who, you may have heard, was also a Republican — told the Times that the main problem with the stimulus was that it relied too much on tax cuts and too little on federal spending. Feldstein said:
There should have been more direct federal spending that would have added to aggregate demand. Temporary tax cuts and one-time transfers to seniors were largely saved and didn’t stimulate spending.
Now here’s what Brown told the Boston Globe when asked if he would support a second stimulus (he would not): “It hasn’t created one job that I’m aware of.”
It gets worse: “It created government jobs certainly, and government is doing well.” Brown does not explain what government jobs were created, but perhaps he’s referring to government jobs that were saved — those of teachers, police officers and firefighters. Would he rather they be unemployed?