Size is important

Stimulus spending and common sense 

A preponderance of economists and economic commentators support the use of stimulus spending to counter recessions. The IMF supports it; the G20 governments support it, Treasury head Ken Henry supports it, bank economists are often quoted as supporting it and economic columnists in newspapers support it. Support for it is overwhelming. If the degree of support counts then the matter is settled and perhaps to an even greater degree than is the "settled matter" of man-made globing warming. 

A few brave conservative souls – Galileo-like – fly the flag for the opposing view. (Within Australia, Steven Kates is prominent among them in Quadrant Online and elsewhere.) They make the case that boosting government expenditure in recessionary times does more harm than good and lessens economic growth. Inevitably, the debate has become politicised and, as with global warming, once that occurs tribal positions are cemented in place and light and reason have a…