The Following Notice Appeared on a Full Page of the Wall

question 32

Essay

The following notice appeared on a full page of the Wall Street Journal on February 9, 2009:
"There is no disagreement that we need action by our government, a recovery plan that will help to jumpstart the economy." -President-elect Barack Obama, January 9, 2009
With all due respect Mr. President, that is not true. Notwithstanding reports that all economists are now Keynesians and that we all support a big increase in the burden of government, we the undersigned do not believe that more government spending is a way to improve economic performance. More government spending by Hoover and Roosevelt did not pull the United States out of the Great Depression in the 1930s. More government spending did not solve Japan's "lost decade" in the 1990s. As such, it is a triumph of hope over experience to believe that more government spending will help the U.S. today. To improve the economy, policymakers should focus on reforms
that remove impediments to work, saving, investment, and production. Lower tax rates and a
reduction in the burden of government are the best ways of using fiscal policy to boost growth.
The statement was signed by over two hundred economists, including three Nobel Laureates.
a. Comment on the extent to which the disagreement between the president and the economists involves a disagreement about whether policy should be passive or active.
b. Identify the rationale(s) used to support the economists' position.

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Definitions:

Social-cognitive Perspective

An approach in psychology emphasizing the importance of observational learning, self-efficacy, situational influences, and cognitive processes in the understanding of behavior.

Pessimistic Explanatory Style

A tendency to habitually interpret negative events as permanent, pervasive, and personal, often leading to feelings of helplessness and depression.

Epigenetics

The field of study that delves into organismal modifications brought about by gene expression changes rather than genetic code alterations.

Psychotic Disorder

A category of mental health disorders characterized by a disconnection from reality, including symptoms such as hallucinations and delusions.