The Stimulus Is A Failure

[Drake Tungsten]

That's certainly a clever way to incorporate the consequences of unprecedented deficit spending into the cartoon.

[KrazyHorse]

Call options on future tax burdens

[Dinner]

As of yesterday the news was reporting that about 10% of the stimulus has been spent so far with 90% still to go. This is largely because Republicans insisted that it not all be spent at once and that there be lots of public accountability thus the slow roll out.

It's amusing that Drake has announced it a failure with 90% still to go. I agree that, due to Republicans, it was to small and composed of to many tax cuts which won't actually stimulate anything but we all know they've been trying to make the economy a failure from the start. That's their goal. They know that economic failure is the only way back into power quickly so they've been banking on it. When it comes to rooting for America to do well or rooting for it to fail to further their political ambitions then they'll work against America's best interests every time just like we literally, yes literally, have conservatives publicly hoping for another a terrorist attack like 9/11.

[Dinner]

http://www.youtube.com/watch?v=Lyur7LuUUsw

[Drake Tungsten]

It's amusing that Drake has announced it a failure with 90% still to go.

Spending 90% of the stimulus too late to actually counteract declining GDP is a failure.

[Dinner]

I agree it is better to do it faster but it is better late then never. I'll also point out that Republicans did this deliberately saying they didn't want the whole stimulus being used in a month or two and wanted to spread it out. Again, as you said the goal is to jolt the economy so the Republicans were (best case scenario) economically illiterate or more likely deliberately attempting to sabotage the stimulus.

I blame Obama and Reid for constantly giving into Republicans who, it is obvious, were deliberately trying to under mine the efforts at economic recovery for partisan political reasons.

[KrazyHorse]

but it is better late then never

No. If the "stimulus" money ends up getting spent when the economy has returned to something approaching capacity then it will merely displace private spending.

[SlowwHand]

Yeah. By then, what's the point?

[Dinner]

Maybe but wouldn't it depend on exactly what the money is being spent on? Additional roads, repaired schools, etc... would still be worth the effort. Besides, do you really think the economy is going to be back at full capacity in the next 6 months? Most people seem to doubt it so I'd say that's an unlikely event.

[KrazyHorse]

Additional roads, repaired schools, etc... would still be worth the effort

Then justify the spending on that basis. It is not stimulus money at that point, merely provision of goods by the government.

[Dinner]

What would you suggest they do? Cancel the bill and then pass a new one for the projects they already approved and canceled? What a waste of time.

[KrazyHorse]

I'd suggest that they take a look at the spending timeline for projects approved with stimulus money and cut those which are not going to put out the bulk of their money in the next 6 months or so.

[notyoueither]

Republican stooge.

[notyoueither]

... and the Habs suck.

[Dinner]

That's nice from a purely academic point of view but polysci 101 says never waste political capital fighting the same battle twice. The bill is passed and the goods are in the bag so politicians won't let go of a done deal especially if it helps their district.

On the upside there are signs that the worst may be over and that a global recovery is starting.

http://news.bbc.co.uk/2/hi/business/8140204.stm