Why The Stimulus Isn't Working (Obama, rating, money, government)

[Motion]

YouTube - Joseph Stiglitz Lambastes Obama Stimulus

[Motion]

How do you determine how big a gov't stimulus should be before implementing it?

[Majordomo]

Originally Posted by Motion

How do you determine how big a gov't stimulus should be before implementing it?

A less effective stimulus would be required to spend more funds than a stimulus that is more effective to create the same AD. Size is important but not as important as other factors. Spending most of the funds in the beginning with less funds being spent as time goes on and concentrating on spending that will multiply is very important. It is possible to spend $1,000,000 and not see a cent of it multiply. Anyone that argues against that doesn't understand the variables.

[malamute]

Tax cuts work a lot better because the productive who create wealth are allowed a bigger chunk of their own money. Government redistribution programs are a bad idea because they take from those who produce and give to those who don't. That alone means bad decisions are made when it comes to spending of that wealth.