Quote:
Originally Posted by SoCalCoug
But if there is a legitimate economic theory to support that sort of spending as an economic stimulus, then can you really call it pork?
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It's a fact that fiscal spending creates demand. The debate is what's more efficient - what has the higher multiplier - money in the hands of the government or in the market. It can be argued that in our current circumstances the government is more efficient, because if the market had money it would be saved/horded and not spent/lent. (Savings!? The horror!) I don't agree, per se, but it's a legitimate position.
Now on the question of stimulus...if it takes more than three years to spend, it's not stimulus; it's funding. 60% of the spending in the current bill is funding.
Funding programs three to seven years out, on money we're borrowing, only increases long-term deficits and *does not* stimulate the economy now.
If we don't care about future defecits...well, ok, as Keynes said, "In the long run we are all dead."