Monday, January 05, 2009

More On The So-called "Stimulus Package"

I wonder if anyone in positions of authority will listen to her. I wonder if she'll listen to herself:

Second, as multiple studies have shown, government spending has little stimulative value. One of those studies was done by Obama’s new chief economic advisor, Christina Romer of UC Berkeley, who found $3 in increased Gross Domestic Product (GDP) for every $1 in tax cuts. Increased spending generates at best a mere 40 cents of GDP growth on the dollar. Third, that 40 cents actually goes to special interests like labor unions, politically influential contractors in favored industries and state and local political allies of the party in power.

We'll see what the "reality-based community" has to say about this one.

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