Stimulus Spending Doesn't Work

[shira]

Stimulus spending doesn't work, it is not possible for the government to stimulate the economy and only the private sector is capable of doing this. Government cant create jobs but they can only redistribute wealth. Many times with stimulus spending more government jobs are created and these require continuous spending to keep them.

Stimulus spending is flawed logic and will only continue to make things even worse for countries that use it. It will just result in more debt that is even harder to get out of.

http://www.usnews.com/opinion/blogs...her-study-shows-stimulus-spending-doesnt-work

http://online.wsj.com/article/SB10001424052748704471504574440723298786310.html

http://www.youtube.com/watch?v=wM_GsGzQPCg

Do you agree that stimulus spending doesn't work?

Tell that to the Chinese. It's estimated that about half their economic growth in recent years is due to government-funded projects.

http://www.washingtonpost.com/world...e-an-impasse/2012/06/05/gJQA7KaEGV_story.html

China’s problems are complex. Simply put, the country’s recent double-digit growth in gross *domestic product has been fueled mainly by its massive investment — spending on infrastructure, skyscrapers and factories by local, provincial and central governments. Last year, investment spending accounted for roughly half of China’s GDP, with all that construction funded by a spectacular run-up in real estate prices. It works like this: The government sells real estate to developers, and then developers and state-owned enterprises use real estate as collateral to get bank loans.

So tell us again how stimulus spending doesn't work.

 

[rchiu]

Tell that to the Chinese. It's estimated that about half their economic growth in recent years is due to government-funded projects.

http://www.washingtonpost.com/world...e-an-impasse/2012/06/05/gJQA7KaEGV_story.html



So tell us again how stimulus spending doesn't work.

Important to keep in mind is if your stimulus money will give you good return on investment. Meaning you can build all the office building, road, railway, the question is can you find paying customer for those.

In China and their hot economy, most likely. In the US, not so sure. It's not about the stimulus, it's if it will be used correctly and generate positive return. With politicians running the projects, and slow economy, not sure stimulus is a good idea in the US.