(Reposted from the previous thread)

re: #296 Racer X

Because all of the other job-creating spending bills have worked so well.

Actually, the Stimulus package worked, it just wasn’t big enough. Yes I’m a libertarian. But everyone seems to forget that 1/3 of the stimulus package was a tax cut, another third was money given directly to the states to cover *their* shortfall. and only 1/3 was used towards any sort of construction and actual stimulus spending.

Meanwhile you had the GDP crash at the end of 2008 into 2009 that put 4 million people out of work, and a real world reduction of the GDP by half a trillion dollars.

If anything the Stimulus stabilized the situation and prevented the economy from continuing it’s free fall. If you haven’t noticed, as the stimulus spending and QE2 is winding down, the economy is starting to break down again. Mind you, the break down isn’t as bad precisely because of the stimulus package, QE2 and TARP restored enough confidence to prevent a depression.

Meanwhile we’re still looking at a real specter of a deflationary spiral, we’re already mired in a liquidity trap, demand side recessions with low inflation is notoriously difficult to work out of.

We’re not even going to talk about how austerity isn’t working for Europe. but I will if you want me to. :)