The Best Paragraph About the Economy I Have Read Today

The stimulus bill signed by President Obama will put about $8 back into most people’s weekly paychecks.  The Wall Street Journal asked leading economist to give advice to how the average American could best use the extra money.

Here is my favorite response:

Ethan Harris, Barclays Capital: Get a haircut. It is a purely domestically produced service with extremely high labor content. This means no drain in spending power out of the country: it is “Buy American” without violating any trade agreements. It also has a high impact on employment due to the high labor content. Finally, an $8 haircut–as opposed to the $100 variety– is probably being done by a low income person who is likely to spend rather than save the 8 bucks, ensuring strong second round spending effects. We will groom our way to recovery…

Here is the full story at the WSJ.