Baloney.
It simply takes money away from productive citizens and turns it over to Government to squander on programs. More sand in the gears of the economy.
Posted on 04/05/2009 4:59:27 AM PDT by reaganaut1
Barack Obama says his “unprecedented” economic stimulus package will not merely be “a short-term program to boost employment.” No, it “will invest in our most important priorities like energy and education; health care; and a new infrastructure that are necessary to keep us strong and competitive in the 21st century.”
The massive cost of the stimulus doubled even before any legislation was written, much less approved. Originally tagged at $400 billion, the proposal quickly jumped to $825 billion, and latest estimates at press time have it costing north of $1 trillion (comprised of 60 percent spending and 40 percent tax cuts).
Given the size, will the stimulus work as advertised? Will the goods and services—be they concrete for new highway projects or groceries for hungry families—pump up flagging demand and boost stalled economic activity?
If so, it will be the first time in modern recorded history.
Take the New Deal. According to the economists Christina Romer—chair of Obama’s Council of Economic Advisers—and David Romer, New Deal spending did not pull the economy out of recession. In a 1992 Journal of Economic History paper, the Romers examined the role that aggregate demand stimulus played in ending the Great Depression. They concluded: “A simple calculation indicates that nearly all of the observed recovery of the U.S. economy prior to 1942 was due to monetary expansion. Huge gold inflows in the mid- and late-1930s swelled the U.S. money stock and appear to have stimulated the economy by lowering real interest rates and encouraging investment spending and purchases of durable goods.”
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If politicians actually want to do something cost-effective to solve our economic woes, here’s some advice: Stay away from spending and tax rebates. Instead, focus on real incentives to work and invest, such as cutting marginal tax rates for everyone.
(Excerpt) Read more at reason.com ...
“Stimmulating ourselves to death.” Fun title.
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