Sunday, January 18, 2009

Quick, Name That Stimulus Package

Can you name the last stimulus package that actually worked, that prevented a recession?

They first became popular in the 1960's, premised on using federal funds borrowed from the capital markets to increase spending above "normal" and thereby prevent employment loss.

There have been more than a score of major stimulus packages since, adding trillions of dollars to spending and to the federal debt.

But I can't think of a single one that has made a difference other than increasing the size of the federal bureaucracy. The most recent, the $150 billion worth of rebate checks distributed last Spring, was described as being "the solution." That's the same description used to justify every one.

But not a one has ever made a difference.

The only change is that the dollar amount gets larger.

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