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Originally Posted by Cannon Shell
The Obama administration claims a dubious "Keynesian" multiplier of 1.5 to feed the Democrats' thirst for big spending. The administration's idea is that virtually all their spending creates jobs for unemployed people and that additional rounds of spending create still more—raising income by $1.50 for each dollar of government spending. Economists differ on such multipliers, with many leading figures pegging them at well under 1.0 as the government spending in part replaces private spending and jobs. But all agree that every dollar of spending requires a present value of a dollar of future taxes, which distorts decisions to work, save, and invest and raises the cost of the dollar of spending to well over a dollar. Thus, only spending with large societal benefits is justified, a criterion unlikely to be met by much current spending (perusing the projects on recovery.gov doesn't inspire confidence}
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Doesn't call the stimulus a failure. Again, the guy isn't happy with the way the jobs numbers are being calculated (there was a recent change); and also isn't happy with who stimulus funds are being disbursed to (although he's not specific - he says "large societal benefits" - so is he against the train and road projects? the tax cuts? what exactly?)