A January 5th 2010 article from heritage.org explains that government spending has been shown over the past decades to be incapable of stimulating the economy. Unfortunately, we’ve had to endure repeated failed trials of this government spending theory instead of just using common sense that for every dollar you inject into the economy, you had to extract it from somewhere else or place the burden on future generations through borrowing. And usually, the government trying it only counts the dollars spent and the jobs “created” while ignoring the jobs lost and the dollars confiscated. Here’s an abstract of the article:
Abstract: Despite decades of repeated failure, President Obama and Congress continue to promote the myth that government can spend its way out of recession. Heritage Foundation economic policy expert Brian Riedl dispels the stimulus myth, lays out the evidence that government spending does not end recessions–and presents the evidence for what does end recessions. Hint: It’s not another “stimulus package.”
It’s kind of like pulling money out of the bottom of your piggy bank and then stuffing it back into the top and fooling yourself into believing that you just made a bunch of money. Why is this so hard for some people? Go read the article and enjoy some common sense.