One of the dangers of all this historically unprecedented spending is that it will spark a very dangerous new round of inflation. Never mind the spenders argue, before inflation can get started, we will pull the money out of the system. This of course sounds very much like the drug user who says that he is not hooked and can quit anytime. Washington does not work that way and never has; real spending cuts have rarely been seen. A brief history of the size of government as a percent of GDP shows that government never shrinks. At best, it plateaus from time to time.
Monthly Archives: April 2009
Washington’s Great Bait & Switch
They sold the stimulus package as one that was largely oriented towards the infrastructure and other important public works to rebuild the nation’s crumbling physical base. What emerged was anything but.
Analysts at the Engineering News-Record (ENR) have just finished sifting through the 1,000 page bill that was used to frame the $787 billion in stimulus package – something the House of Representatives neglected to do. What emerged from this careful analysis shows that the stimulus package just approved by the Congress contains merely 16.5% of spending for infrastructure projects.
Posted in Stimulus Plan, The Economy Tagged economic stimulus package, financial crisis, Healthcare, infrastructure projects 1 Comment