Nicole Wallace is on CNN trying to convince people that a discretionary spending freeze is somehow part of John McCain’s strategy to recover from the financial crisis. In response, I would note:
- This is a longstanding McCain proposal that predates the financial crisis.
- It has nothing whatsoever to do with liquidity in the financial system.
- In growth terms, a freeze would shrink the economy rather than boost growth.
Other than that, it’s a good idea.