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.
Not withoug slashing tax rates across the board.
No
Purely 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.
No, but rebuilding our manufacturing base can.
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?
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.
Excellent example w/ the bread baker...
INSANITY: doing the same thing over and over and expecting different results.
Assuming the stimulus package does go through, you know what most poor Americans are going to spend their money on?
Here’s what I usually spend my money on. I have a fixed income, so I can’t afford to buy anything that either wouldn’t last or is overly expensive. The people who would have the most cumulative buying power would be the people who have similar incomes to me.
My mountain bike, which I use for urban commutting, is made by a Tiwanese company. I need to get some new parts for my bike, such as brakes and shifters. No American company makes shifters, so I have to buy Shimano shifters, made in Japan. I would buy Trek or Cannondale but KHS is much cheaper.
I’m also planning on buying a motorcycle for medium and long distance commutting. Since it’s used, an American citizen’s going to get my money, but he in turn would probably use that money to buy a flat screen TV made by Toshiba.
I also need to fix my laptop and my PDA. My parts are made in China.
Since I’m in the constant need for hydration since I’m always on my bike, I don’t want to buy pop since it’s unhealthy and it costs much more money than just brewing iced tea and it’s too expensive for me to buy Gatorade, so I just brew some iced tea. An iced tea brewer uses Chinese parts.
Any money that we give to the populous will go to China and not to Americans,which will leave us in a bigger amount of debt. That’s why we need tax cuts for the “wealthy business owners” and not welfare benefits for people who are just going to spend our money on foreign made goods.