Tuesday, January 27, 2009

Stimulus, cont.

  • Not only is the stimulus package valued at well over $800 billion, it's also almost 1600 pages long. How many Congressmen do you imagine have actually read the whole thing and fully understand what they are even voting on? Try zero. Read it yourself here.
  • Much of the logic behind the stimulus package is based on Keynesian logic but Keynes himself said that "Organized public works...are not capable of sufficiently rapid organisation (and above all cannot be reversed or undone at a later date), to be the most serviceable instrument for the prevention of the trade cycle."
  • Even if passed immediately, most of the spending in the bill will not take place until October at the earliest and well into 2010 -- at which time the economy will likely have already begun to improve on its own.

No comments: