Early last month, I wrote in critique of the stimulus bill, urging my readers to take action and contact their representatives to oppose its passage. One reason I gave was that it wouldn't actually stimulate the economy : On the surface, it seems to make sense. The economy is doing poorly, so give it a fresh infusion of billions of dollars, and it will start to perk up. But the thing is that it isn't a fresh infusion of billions of dollars. This money won't be coming from some magical government storehouse of wealth to inject the economy with new cash- it will be coming from the economy. All the money the government will be spending to stimulate the economy is in the economy already. If you understand and can share just that one simple principle with others, the public will go a long way towards understanding why the stimulus package won't stimulate the economy. All this package does is move around money that already exists and is already in our economy. A couple weeks...
Old blog

