“Stimulus” may be a dirty word in Washington these days, but don’t we need another boost to kick-start the economy?
Many economists say yes ”” even if it may not be politically feasible after the election. Economic historian Niall Ferguson, however, says a second round isn’t a good idea at all.
The Harvard historian tells NPR’s Guy Raz that while it might have some impact on unemployment figures, another stimulus also carries with it a tremendous risk.
“The risk is that you finally stretch the credulity of financial markets to the breaking point, and investors ”” not only in the U.S., but abroad ”” say, ‘You know what? U.S. fiscal policy really is out of control,’ ” Ferguson says.