Why Does Stimulus Work? A Follow-Up

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Just a quick note: a few days ago I linked to a John Cochrane post in which he suggested a big difference between the Old Keynesian and New Keynesian explanations for why fiscal stimulus works. Aside from any other disagreements that liberal economists might have with Cochrane, I was curious about whether his description was correct. Well, for those of you who have been sitting on the edges of your seats waiting for an answer, now we have one. Robert Waldmann (here) and Paul Krugman (here) basically say that Cochrane’s story is so fundamentally confused that it’s all but impossible to even criticize it. “Cochrane’s fantasy has so little connection with reality that it is hard to discuss,” says Waldmann. “He can’t be bothered to actually figure out how the models work,” says Krugman. So that’s that. No punches are being pulled in this cage match. Just thought I’d pass it along.

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Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

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Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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