The View From 1776
Monday, January 31, 2011
Once Again Stimulus Spending Doesn’t Work
Why did Keynesian economics fail to produce advertised results?
New York Times propagandist Paul Krugman and other liberal-progressives are still beating the drums for more and bigger Federal deficit spending. Unhappily, the fact is that the Democrat/Socialist Party’s $862 billion stimulus, the largest in world history, failed to revive the economy.
That failure is shared by every such effort, from Franklin Roosevelt’s “pump priming” in the 1930s through the present day. Results of the latest stimulus program are just as they have been in the past: a failure at reviving business and employment, but a big pay-off for unions and other special interest groups. John F. Cogan’s and John B. Taylor’s Where Did the Stimulus Go? gives us the numerical particulars.
No one can say there was no forewarning of this fiasco. See Another Cautionary Report on Stimulus Plans, posted on this website the week before President Obama’s inauguration in January, 2009. In the same vein, see Government Stimulus Spending: Differing Perspectives.
Small business owners, who cannot mobilize campaign workers and contribute tens of millions of dollars to Democrat/Socialist candidates, are on the losing end (see Stimulus Disincentives).