In this short Economic Video Commentary, Brian Wesbury explains why Austan Goolsbee (former Chairman of the Council of Economic Advisers) is wrong when he calls for more government spending to boost economic growth. As Wesbury explains, "If you take it from people who might invest it and give it to people who are certainly going to spend it, you will have less investment and more spending...resulting in slower economic growth." Watch it here.
Ruchir Sharma, Chief Global Strategist at Morgan Stanley had an interesting Op-Ed in the Wall Street Journal. In it, he studies the market reaction to Federal Reserve rate hike announcements and found "the S&P 500 index has gained 699 points since January 2008, and 422 of those points came on the 70 Fed announcement days." Statistics are tricky things, but this is worth a read. Wall Street Journal
