Stimulus doesn’t work
“Few counties, for example, received more road money per capita than Marshall County, Tenn., about 90 minutes south of Nashville. Obama’s stimulus is paying the salaries of dozens of workers there, but local officials said the unemployment rate continues to rise and is expected to top 20 percent soon”
That’s because the Keynesian notion of stimulus doesn’t work. It is based upon the naive idea that all government spending is good. We know that is a false premise. Politicians will spend on what will increase their own power, which often comes into conflict with what is in the social good. Which do you think will win out? Which salaries do you think the Stimulus is paying for? If you say Government workers you are correct!
Remember Keynesian stimulus, increase in G in the C+I+G+NX equation, is suppost to work no matter what it is spent on. Keynes himself said all you had to do is bury some money and let the public dig it up; the whole notion of digging a ditch and then filling it back in. So why isn’t it working? Simple answer, Governments are not benevolent. I’d encourage you to read up on Public Choice Theory, like my example of a Tulluck Lottery a few days past.
H/T Liberal Rapture