Wednesday, August 31, 2011

Will More Stimulus Spending Help?

Megan McArdle: Why didn’t the stimulus create more jobs?

This paper goes a long way toward explaining why fiscal stimulus usually doesn’t have such a great “bang for the buck.” It raises the question of whether as “twice as big” stimulus really would have been enough. Must it now be four times as big?

More often than not, fiscal stimulus seems to redirict taxpayer money to politically favored companies and constituencies. No where is that more evident than in the imploding "green jobs" business of solar energy.

No comments: