Serious question for the left

[Wiseacre]

Many of those on the left feel that the first stimulus wasn't enough, and that we should double down or triple down with another couple trillion or so of increased spending. Irrespective of how you're going to pay for it, why do you think more money spent will make a difference? Sure, we'll get a temporary boost, but why should we think the effects will be permanent? And, since the shovel ready jobs weren't really shovel ready the last time, why should we believe this time will be any different? Thanks.

 

[The Rabbi]

Because if you look at the drop in demand then gov't logically must fill that gap. That's Keynes. Since the drop was on the order of 3T then that's how much gov't must spend.

Never mind the money must come from somewhere, namely productive uses. The nancy-boy Keynes' theories should be placed just behind Communism for greatest failed theory ever.

 

[Wiseacre]

Nobody answered my questions. Too hard?

Seriously, how much more spending do you think it would take to get an economy of this size going again, especially in view of the impending problems in Europe? There's a reason a lot of investors are pulling their money out of stock markets around the world and putting their money into gold and US Treasuries. In view of the debt we've already got, and the CBO projections that it'll grow by another ten trillion by 2020, how can you possibly think another stimulus package will make any difference?