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Another Magnificent Moment in the World of Government Stimulus

johnm h Wrote: May 21, 2012 7:15 AM
Keynesian stimulus spending is nonsense even if carried out as you say. It's a fraud that won't go away because it justifies political pork Bush tried giving away cash and made deep cuts in lower marginal rates, but the only stimulus came from smaller cuts on the upper brackets. While the macro conditions didn't match your sensible conditions of pre recession surplus, it shouldn't matter much. With a surplus we would be exporting savings through a current account surplus and switch to importing savings with a deficit. While Keynes isn't responsible for the model, Keynesians are and it is utter nonsense.

Most of my work on government stimulus focuses on economic theory and evidence.

But every so often it’s a good idea to remind ourselves of the ridiculous ways that government wastes money.

Here are some details from a boondoggle in West Virginia.

Nobody told Hurricane librarian Rebecca Elliot that the $22,600 Internet router in the branch library’s storage closet was powerful enough to serve an entire college campus. Nobody told Elliot how much the router cost or who paid for it. Workers just showed up and installed the device. They left behind no instructions, no user manual. The...

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