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Can Fiscal Stimulus Revive the US Economy?
Ludwig Von Mises Institute ^ | January 22, 2009 | Frank Shostak

Posted on 01/22/2009 11:09:10 AM PST by dbz77

Can Fiscal Stimulus Revive the US Economy?

Daily Article by Frank Shostak | Posted on 1/22/2009 12:00:00 AM I Want YOU to Spend Spend Spend

On Thursday, January 8, 2009, US President-elect Barack Obama said,

I don't believe it's too late to change course, but it will be if we don't take dramatic action as soon as possible. If nothing is done, this recession could linger for years.

Most economists and various commentators are in agreement. They hold that the US government must sharply increase its spending in order to arrest the economic crisis that could turn into a prolonged slump.

(Excerpt) Read more at mises.org ...


TOPICS: Business/Economy
KEYWORDS: business; economy; frankshostak
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1 posted on 01/22/2009 11:09:11 AM PST by dbz77
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To: dbz77

No. Stimulus may provide a short term delay of the inevitable. Been there, done that (Great Depression). And we all know the only thing that brought us out of that was WWII.


2 posted on 01/22/2009 11:16:48 AM PST by kingpins9
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To: dbz77

Not withoug slashing tax rates across the board.


3 posted on 01/22/2009 11:18:00 AM PST by Badeye (There are no 'great moments' in Moderate Political History. Only losses.)
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To: dbz77
Can Fiscal Stimulus Revive the US Economy?

No

Purely no.

4 posted on 01/22/2009 11:20:56 AM PST by arthurus ( H.L. Mencken said, "Every election is a sort of advance auction sale of stolen goods.")
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To: dbz77
In a word, no.

We know that because the decline in the price of gasoline has been a huge stimulus. More evidence is the fiscal stimulus last year which was like trying to stop a tidal wave with a kids pail and shovel. The answer is capitalism but socialists don't like that answer so prepare to be stimulated.

5 posted on 01/22/2009 11:21:28 AM PST by jwalsh07
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To: dbz77
Can Fiscal Stimulus Revive the US Economy?

No, but rebuilding our manufacturing base can.

6 posted on 01/22/2009 11:23:44 AM PST by MahatmaGandu (Remember, remember, the twenty-sixth of November.)
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To: dbz77

Government Spending more money bring us out of a recession?

No chance. That has never happened.

Permanent Marginal Tax Cuts bringing us out of a recession? Yes, every time it is tried.

So, it depends on which kind of “Fiscal Stimulus” is employed.

Which do you think 0bamessiah will choose?


7 posted on 01/22/2009 11:26:12 AM PST by Uncle Miltie (Keynes is dead. Keynesianism is dead.)
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To: MahatmaGandu

Is that you, Willie?


8 posted on 01/22/2009 11:27:07 AM PST by Uncle Miltie (Keynes is dead. Keynesianism is dead.)
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To: jwalsh07
prepare to be stimulated.

This is true in so many ways.

9 posted on 01/22/2009 11:27:27 AM PST by MahatmaGandu (Remember, remember, the twenty-sixth of November.)
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To: kingpins9
And we all know the only thing that brought us out of that was WWII.
WWII was effectively a stimulus package.
10 posted on 01/22/2009 11:27:27 AM PST by dbz77
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To: Uncle Miltie

Nope, I’m not Willie but I suspect I’d like him if I met him. (-:


11 posted on 01/22/2009 11:29:44 AM PST by MahatmaGandu (Remember, remember, the twenty-sixth of November.)
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To: kingpins9

short term?

apparently the money won’t be spent till 2010.

tax cuts would be much faster


12 posted on 01/22/2009 11:32:00 AM PST by GeronL (DAY 3, YEAR 0 - "and when white will embrace what is right". Hate speech on parade in a benediction)
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To: dbz77
Herein find TRUTH and it is not complicated to read.Anyone who actually wants to know what is happening and what will happen given government action, read Human Action by Ludwig von Mises.

If you want a short course in economic thinking whereby you will learn to quickly parse anything someone says about stimulating the economy or directing it read Economics in One Lesson by Henry Hazlitt. It is short, plain English, and was required reading for my 4 children, once in middle school and again in High School. Now, as young adults when they are tempted by some Utopian scheme their brains automatically go into if-then mode and they see the economic fallacies and do not get sucked in. Making your kids read Hazlitt's simple book is pretty good insurance that they will not get co-opted by University utopianism even when they get intellectually rebellious. That dataset installed in their brains will bring them back to earth.

13 posted on 01/22/2009 11:35:05 AM PST by arthurus ( H.L. Mencken said, "Every election is a sort of advance auction sale of stolen goods.")
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To: Badeye
Slashing tax rates loses effectiveness as the government pours new invented money into the system. It is still better than not slashing tax rates.
14 posted on 01/22/2009 11:37:37 AM PST by arthurus ( H.L. Mencken said, "Every election is a sort of advance auction sale of stolen goods.")
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To: dbz77

Excellent example w/ the bread baker...


15 posted on 01/22/2009 11:40:36 AM PST by Pessimist
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To: arthurus; TigerLikesRooster; rabscuttle385
The writing is on the wall, for those who can read.

"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."

-~~Ludwig Von Mises


16 posted on 01/22/2009 11:41:29 AM PST by Travis McGee (www.EnemiesForeignAndDomestic.com)
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To: Uncle Miltie
I hate to be a downer but tax rates were slashed by 30% from 1981-1983 and America entered her worst recession since the Great Depression during that time.

Tax Cut’s are great for long term growth and we surely need them, but the fact is you can't stop a recession no matter what you do. It's like trying to stop the sun from rising.

Recessions are beneficial in the long run. If the Government does not meddle, firms and individuals tend to cut a lot of fat out of their bottom lines and lives and emerge out of the slump in a better position and more efficient then when they entered it.

17 posted on 01/22/2009 11:43:02 AM PST by spikeytx86 (Pray for Democrats for they have been brainwashed by their fruity little club.)
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To: GeronL

Actually what I should’ve said was ANY stimulus’ effect will be VERY minimal and that’s it. We need huge budget cuts and huge tax cuts. And we need them now. “America’s Great Depression” by Murray Rothbard is a good read. Keynesianism is a huge failure. This current mess proves it.


18 posted on 01/22/2009 11:44:23 AM PST by kingpins9
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To: kingpins9

okay. I forgive you.

Its a good article, btw


19 posted on 01/22/2009 11:46:18 AM PST by GeronL (DAY 3, YEAR 0 - "and when white will embrace what is right". Hate speech on parade in a benediction)
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To: arthurus

Fair point. As long as we have a corporate tax rate thats second only to Japans, we tie one hand behind our back.

Which tells you why the Japanese build manufacturing plants here, but nobody else does, btw.


20 posted on 01/22/2009 11:46:36 AM PST by Badeye (There are no 'great moments' in Moderate Political History. Only losses.)
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