Do We Need An Economic Stimulus Package?
First of all, I’d like to apologize for my total neglect of this blog. Schoolwork is catching up and as the quarter is ending, all of my projects and work deadlines are coming up, not to mention all of the exams I’ve had to take. It can certainly take its toll. Expect a general slow down of posts from once a day to a few per week. That will be my goal at least.
One of the main topics of discussion that I’ve seen is whether or not the economic stimulus package will do any good. Liberals will praise it. Conservatives condemn it. I asked Twitterers whether or not we even needed this package and if it will work. Here’s how I see it.
The whole point of the stimulus package is to increase government spending into the US’s infrastructure. Investing in infrastructure will help to promote faster economic growth in the future, all the while raising current GDP. Investing in infrastructure should help to bring in more jobs and in the end take us out of the recession with a stronger economic growth plan. It’s a very Keynesian approach to solving the current crisis, an it sounds good on paper.
Conservatives will argue that the economic stimulus package is but a load of crap that will only help to raise the national debt and will provide absolutely no relief because of how the bill will allocate the money. If you take a look at one of the Black Sphere’s latest posts, Education in the Financial Bailout – Pork-A-Palooza II, you’ll see that the author’s concern is that of spending money in education that will mostly go to waste. If you agree that the public education system is mostly ineffective and inefficient, then you can easily agree that investing a lot of deficit money into a system that will make poor use of the funds is a cause for concern.
Democrats are of course complaining that Republicans are taking a party stance on the economic stimulus package and are outright rejecting the bill. Although it’ll most likely pass anyway, I really feel the specifics of the bill need to be worked out between the two parties to make sure that funds aren’t being wasted, because throwing 800+ billion dollars into programs that are ineffective and/or inefficient are not going to help achieve the results we want.
Of course, if you’re a Monetarist, the stimulus package is worthless anyway.


