1. We already know that politicians disagree on how to fix the economic problems. It's not just politicians, economists also disagree.

When the recession hit back in December 2007, first President Bush then President Obama responded quickly with stimulus packages that included tax cuts and spending increases. Several economists such as Paul Krugman and Robert Reich backed this approach as they believed Keynesian policies would restore the insufficient demand and bring the economy back to full employment level. Yet, most Republicans and some other economists such as John Taylor and Gregory Mankiw disagreed with this approach and they claimed that more stimulus would create more uncertainty in the private sector and eventually lead to a debt crisis.

What do you think?

Were the expansionary fiscal policies implemented since the beginning of the Great Recession the right policies or should the government have stayed out of the way and let the market clear itself?

Answer rating: 100% (QA)

The effectiveness of the expansionary fiscal policies implemented during the Great Recession remains a complex and debated topic among economists and ... View the full answer