Posted on 01/26/2011 4:13:04 AM PST by Kaslin
Economy: Did the hundreds of billions spent to stimulate the economy do the job? And where did all that money go, anyway? A new report crunches the data and finds answers that are devastating for stimulus backers.
Done by Stanford University economists John Cogan and John Taylor and published in Commentary Magazine, the report is blunt in its assessment of President Obama's Keynesian stimulus package: "There was little if any net stimulus."
Worse, say the authors, the White House with its bevy of hip Keynesian-leaning economists should have known it wouldn't work. "The irony," they write, "is that basic economic theory and practical experience predicted this would happen." In other words, the Obama camp should have known better.
But why the stimulus didn't work is a little more complex. The authors break down the three kinds of Keynesian stimulus packages.
In one, government gives money to consumers and hopes they spend it. In another, the federal government directly buys goods and services, ranging from computers to building infrastructure. In the third, government hands money to state and local governments to spend.
The $862 billion stimulus package passed by Congress and signed into law by the president tried to do all three things. Unfortunately, none of them worked — a huge repudiation of the ideas behind Keynesianism.
(Excerpt) Read more at investors.com ...
We’d been better off if they would have simply divided up the money, and mailed us all a check. Of course, that wouldn’t have done much good either.
bttt
Thanks you thieving politicians. Cronyism is the way of these scummy politicians. Do everything you can to limit your financial exposure to their confiscatory schemes until they can be kicked out (and hopefully arrested). Starve the Beast.
WRONG! Why pay the government their 30% or 40% "processing fee"? We would have been better off if they cut damn taxes, left the money in the hands of its earners and rightful owners, and let the market make hundreds of millions of decisions about spending and investing. Nothing beats the collective wisdom of the market optimizing individual and personal rewards.
and yet the obama administration will continue to tell folks they created over 1 million jobs last year, ‘more jobs than created the entire 8 years of George Bush’
i heard nancy pelosi lie like that on Greta last night. This country is in big trouble if they continue to believe that debt is good.
Thieves
Can we go back in time to 2008 and elect Nero’s horse to be President?
STIMULUS BILL FLASHBACK via my TN Eagle Forum email this morning
$219K To Study “The Sex Patterns Of College Women”
$1 Million For The “The Sunset Strip” “Nose Job”
$50K To Repair “Cracks” In Tennis Court
$300K For “Mapping Radioactive Rabbit Feces”
$325K To Study “The Mating Decisions” Of Female Cactus Bugs
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