Archive for March, 2011|Monthly archive page

Psychology of Public Policy: Learning from the Stimulus

In Budget Politics, Democratic Governance, Economic Planning, Economics, Financial Crisis, Full Employment, Political Ideology, Politics, Politics of Policy, Public Policy, Public Sector, Social Democracy, Taxes, Welfare State on March 9, 2011 at 6:12 pm


One of the great ironies of the Obama administration so for is that one of its greatest accomplishments, the stimulus bill, is widely viewed with apathy by the public (44% believe it had no impact, while only 9% more believe it made things better than made it worse, according to the New York Times) but actually was a success; economists agree that the stimulus bill created or saved 3-4 million jobs and added about 2.75% to GDP growth per year.

Understanding the divergence between economic reality and public perception is key to developing an economic policy for the future that both works on the ground and can maintain a majority coalition behind it in the polling place.

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