Sheldon Richman, editor of the Freeman, discusses the incredible foolhardiness of the national government adding a new round of “stimulus spending” to the economy’s problems. As unemployment rates continue to grow despite Obama Administration promises that the stimulus would reverse the rising tide of job losses, Richman notes, government officials have been asking for patience…and possibly more stimulus money to spend:
…lately an idea has been floating around that anyone should be able to see through because it has no superficial logic whatsoever. It goes like this: The government hasn’t be able to spend $500 billion fast enough to stimulate the economy, so the only thing to do is . . . give the government even more money.
Economist Paul Krugman, for one, would be a fan of the idea:
Outside advocates of stimulus, such as Paul Krugman, will say the unabated rise in unemployment only proves what they said all along: The spending package was too small. But that is not a satisfying rebuttal. First, as noted, if government agencies can’t disburse a half-trillion quickly enough to jolt the economy, logic compels us to conclude that they can’t disburse a trillion. Should they fly around in helicopters and drop the money? (That wouldn’t work — people would do unpatriotic things like save or pay off debts.)
Read more here on why if Stimulus I was bad, Stimulus II will be even worse.Published in