“There is no disagreement that we need action by our government--, a recovery plan that will help to jump-start the economy.” --B. Obama
Over 200 PhD economists disagree here: http://www.cato.org/fiscalreality
My question to those who do think that spending by the government jump starts the economy is this: How is a dollar different when the government spends it than from when I spend it? If the government takes my money, which I was going to spend, and then spends it, the net gain to the economy is zero. How could it not be? Now, if the government makes money and spends it, then we get a marginal benefit, which over time inflation recaptures.
I'm afraid the underlying reason that this legislation is necessary is twofold. The primary reason, already discussed in many places, is to buy constituency. The second is that my government knows better what I need than I do. In other words, It's my money, but if I keep it I'll spend it wrong. Thank god they're there to steer me in the right direction.
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