[sickoflibs]

RE :”As it turns out, when you unpack the numbers, you find that Romer and her team didn’t actually count how many people got a job thanks to the stimulus. Instead, the number is a projection that relies on the myth that a dollar of government spending creates up to 2.5 dollars of economic growth. That’s strange. Robert Barro of Harvard University has estimated that, even in the best-case senario, $1 of government spending will generate between $0.40 and $0.70 of economic growth, i.e., much less than the amount of growth that we would get if that dollar was invested privately. What’s more, if that dollar has previously been taxed out the economy, then the overall effect of $1 of government spending is a destruction of $1.10 of economic growth.”

The magic 2.5 factor. Just remember. If you spend money you can't afford using your credit card you create $2.5 of economic growth which should pay the CC bill when it comes due. Wait, isnt that how we got into this credit bubble-contraction mess to begin with?

So with all this economic growth we shouldnt need the debt commission Obama hired to raise our taxes, Right?

[Redbob]

" What’s more, if that dollar has previously been taxed out the economy..."

IF???

IF that dollar has previously been taxed out (of) the economy?

WTF else does he think a dollar of "government" money comes from???

[griswold3]

The IMF reports the same results as Barro on ‘stimulus’.