Conventional Economics Works Fine, the Problem is That Robert Samuelson Doesn't Know Conventional Economics

Robert Samuelson gave one of his standard diatribes against the welfare state today. He told readers:

"They [economists] seem to have exhausted conventional policy approaches. Central banks such as the Federal Reserve have held interest rates low. Budget deficits are high."

Let's see we had about $300 billion in annual stimulus to offset a $1.3 trillion drop in annual demand due to the collapse of the housing bubble. Conventional policy approaches say that this is nowhere near enough to...