For all those people out there demanding that the federal government spend more on economic stimulus, it might behoove you to take a moment and look at a recent disclosure by the Cato Institute. Researchers at the institute tracked fifteen pieces of stimulus-related legislation starting in 2008, including “the 2009 stimulus bill, unemployment insurance extensions, and payroll tax cuts.” Tom Firey, who headed up the project, included two types of legislation in his analysis: pieces of direct stimulus which involved borrowing money to spend now and pay back later and pieces of indirect stimulus that involved the same borrow-and-spend philosophy but were not given the official stimulus title (like unemployment insurance). Firey determined that those 15 pieces of legislation alone “dumped at least $2.5 trillion of fiscal stimulus into the economy since 2008.”
Many politicians, analysts, and even some investors are calling for additional stimulus measures to hopefully circumvent a double-dip recession. Do you think that more short-term money is the answer?
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