The dirty secret of the “Stimulus” and the coming “Stimulus 2 is that it was never meant to be be stimulative. These Leftist all claim to be Keynesian yet their “Stimulus” bill is not even Keynesian. It just a massive bribe to their activist base.
It has almost nothing in it that is actually stimulative even using the Keynesian theory of government directed stimulus spending. All the Dems did was hand out money to states and localities to paper over existing budget deficits. Now they want to do the same thing again.
One of the overlooked things coming out of the “job summit” was the statement that ONE part of the plan was to “bail out state and local Governments to preserve jobs”.
Basically what the Democrats did was pay their Visa bill with our Master Card. Now they want to repeat the same fiction in Stimulus 2.
Their local and state special interest groups were facing serious crises due to a massive short fall in tax revenues so Congressional Democrats rushed to the rescue with the “Stimulus” bill. All that did was delay the day of fiscal reckoning for these state and local Governments. It does almost nothing to generate anything that will actually be stimulating on the economy