Sunday, January 10, 2010

So-called Stimulus Spending

Why Government Spending Does Not Stimulate Economic Growth: Answering the Critics

3 comments:

mazenko said...

The hope and the reality is that the stimulus is designed to keep people afloat until the private sector rights itself. That was true in the Depression and it's still true today. Incidentally, conditions improved in the 1930s until FDR decided to stop spending in an attempt to balance the budget. It might not stimulate growth - and isn't intended too - but it might keep people eating and warm. Not much complaints from the beneficiaries. That's why much of the New Deal stayed in place - a desire to not return to the Gilded Age.

Anonymous said...

The private sector would right itself if the democrats & their union thugs would stay out of it.

http://news.yahoo.com/s/ap/20100111/ap_on_bi_ge/us_stimulus_unemployment

mazenko said...

There is no rational way to argue "the democrats" and "unions" are responsible for the current economic downturn or the private sector's struggle to right itself. The current situation was driven by the financial wing of the private sector and it was a completely bipartisan (or actually nonpartisan) effort at corruption.