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Originally Posted by Tex
Right, because the first one worked so well. Or maybe I missed that part: did he say the first stimulus accelerated the recovery and saved jobs? Is that what you read?
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the philosophy is rather simple actually. More money has been spewing into the economy, but I don't notice any appreciable differences, but then again, I didn't participate in cash for clunkers, or didn't qualify as a first time home buyer, so those areas aren't affecting me or more clientele.
On one hand the Keynsians believe the government must inflate the economy by spewing money into it so that it doesn't spiral down further and if they pull the plug too soon it will deflate any way. That's what they argue in short.
On the other hand, that theory doesn't address whether the economy is capable of sustaining itself ever under this model, and what happens to inflation and how will the taxpayers afford the spending spree.
My observation is that this spiral is in large part systemic, our economic structure is rotting at the core, so any spending is artificial and will extend the length of recovery. The longer you delay hitting bottom, the longer it will take to get out of the trough.
It doesn't also address the problems with T Bills and taxation.