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The can is just getting kicked down the road and the impending collapse will be much worse than it would have been. I don't see the stimulous as doing anything but providing a bunch of states and schools money to spend on things like a 1.7 million dollar ballfield like the local school did here, all kinds of community grants and some six month jobs. Now they are whining they aren't gettng as much funding this year and will have to make cuts to teachers couple weeks ago in the paper.
Actually, the stimulus saved lots of teachers and cops from getting fired in school districts short of money. It also provided money for construction, tax-cuts, etc. In all, it raised GDP by 1.5%.
Even if schools spent it on $1.7 million ball fields, people were paid to build it and they went out and spent those earnings. That's how macroeconomics works.
What your argument supports is an additional stimulus plan.
You said the stimulus took money out of the economy. That's wrong. The stimulus was never in the economy. Those funds were generated, and in your examples, transferred to the accounts of state agencies that issue food stamps, and the construction companies that fix roads.
Actually, the stimulus saved lots of teachers and cops from getting fired in school districts short of money. It also provided money for construction, tax-cuts, etc. In all, it raised GDP by 1.5%.
Even if schools spent it on $1.7 million ball fields, people were paid to build it and they went out and spent those earnings. That's how macroeconomics works.
What your argument supports is an additional stimulus plan.
Actually no, the stimulus simply created more debt which needs to be paid for, which is why the future GDP will be REDUCED. Only those who dont care about the future could summarize this supports additional stimulus plans.
Hell, why not create $100T in debt and just blow it on crack, think about how wonderful that would be, right?
The utility said the bonds were sold at an interest rate of 5.51 percent a year. Through the Build America Bonds program, part of the American Recovery and Reinvestment Act, the federal government will reimburse 35 percent of the bond’s interest cost. That subsidy brings the net interest on the bonds down to 3.62 percent, the utility said.
The CSU sold their own bonds and used the stimulus money to cover part of the interest the CSU promised to its buyers.
In other words, the CSU is selling a bond w/ 3.62% interest, and the stimulus is providing another 1.89% in additional interest.
Where is the additional money the stimulus promised coming from? A computer transfer that was generated in a computer program.
The CSU sold their own bonds and used the stimulus money to cover part of the interest the CSU promised to its buyers.
In other words, the CSU is selling a bond w/ 3.62% interest, and the stimulus is providing another 1.89% in additional interest.
Anotherwords, they are selling bonds REMOVING MONEY FROM THE ECONOMY, and the government couldnt provide the 1.89% in additional interest without SELLING BONDS themself..
Anotherwords, they are selling bonds REMOVING MONEY FROM THE ECONOMY, and the government couldnt provide the 1.89% in additional interest without SELLING BONDS themself..
Thanks for validating the accuracy of my postings
The gov't didn't sell any bonds to fund the stimulus.
Bottom Line - Hiring gained traction in December (http://bottomline.msnbc.msn.com/_news/2012/01/06/10002777-hiring-gained-traction-in-december - broken link)
Call and ask the CBO because its their reports which say so
What did CBO use for comparison? I'm sure you know and are capable of sharing in a simple sentence?
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