Study of 34 Countries Shows that Stimulus Efforts Failed Everywhere

Leweman

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Aug 5, 2010
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Often as not, the qualification for receiving stimulus funds is the absence of work or income—such as banks and companies that fail, solar energy companies that can't make it on their own, unemployment benefits and the like. Quite simply, government taxing people more who work and then giving more money to people who don't work is a surefire recipe for less work, less output and more unemployment.

Yet the notion that additional spending is a "stimulus" and less spending is "austerity" is the norm just about everywhere. Without ever thinking where the money comes from, politicians and many economists believe additional government spending adds to aggregate demand. You'd think that single-entry accounting were the God's truth and that, for the government at least, every check written has no offsetting debit.

Well, the truth is that government spending does come with debits. For every additional government dollar spent there is an additional private dollar taken. All the stimulus to the spending recipients is matched on a dollar-for-dollar basis every minute of every day by a depressant placed on the people who pay for these transfers. Or as a student of the dismal science might say, the total income effects of additional government spending always sum to zero.


Arthur Laffer: The Real 'Stimulus' Record - WSJ.com
 
that is for the year 2008

why didnt he show the rest of the current obama record?
 
Only 2009 of those years was Obama in office and his first year was under the budget from the presvious admin.


Its now 2012.

why didnt he use more years?
 
Only 2009 of those years was Obama in office and his first year was under the budget from the presvious admin.


Its now 2012.

why didnt he use more years?

Its not about obama. Its about stimulus. Regardless of where it comes from. I'm sure only so many years of information is available. If you can find more recent information that disproves this I'd read it.
 

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