On More Stimulus Spending

This administration is falling into the same dangerous trap we fell into during the Great Depression, as did the Germans leading into their hyperinflation of the 1920's. The temptation is to do something, anything, proactive to attempt to stimulate the economy, but history has shown us that governments cannot spend their way into prosperity. The best thing government could do is get back to its Constitutional limitations and let the economy stabilize, heal and recover without the crushing burden of government holding it back.

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Faced with continuing economic decline and an impending election, the administration, predictably, is entertaining the idea of another stimulus package. To explain why the last one didn't work, adherents to the Keynesian economic philosophy are claiming that they actually did work -- it just looks like they didn't because we don’t realize how much worse off we would be right now without trillions of dollars of public spending.

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Moot said:

But, but, but, that is partly true. The economy would be a lot worse off without the stimulus bill protecting existing jobs, such as teachers and state government workers and creating new jobs in construction such as overhauling roads and bridges, infrastructure, etc.

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ricksfolly said:

How much of the stimulus package is left.

about.com

Although the economic stimulus package was to be spent over ten years, the bulk was budgeted for the first three fiscal years : $185 billion in 2009, $400 billion in 2010 and $135 billion in 2011. By October 30,2009, over $241.9 billion was spent: $92.8 in tax relief, $86.5 in unemployment and other benefits and $62.6 in job creation grants.

ricksfolly

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"...In early May, some states and cities began to complain that the money had yet to reach them. Some states have been slow to get their paperwork to Washington. Other complaints were that cities were shortchanged on the transportation funds, as much of the road-building funds were steered by states to rural areas, sometimes because the urban projects were too complicated to begin quickly, and sometimes as a reflection of the clout of rural lawmakers.
Stimulus Money Unspent as Economy Struggles - CBS Evening News - CBS News

Big chunk of economic stimulus yet to be spent by state, local governments

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Moot said:

According to the WP article below the stimulus funds have to be spent by 2012 and that while most the money has been appropiated, only half has actually been spent because state and local officials have been slow in spending it. However, my state didn't seem to waste anytime spending their stimulus money and are still announcing more programs to spend the money on. >>

All government projects have to be bid by at least 3 contractors. Which of course means the government group that figures it all out has to be well versed in whatever is being bid on, not just political appointed groups, and therein lies the problem.

Btw, I just passed through your town, Grand Junction a couple days ago and it sure was bustling and has grown, since I was last there a few years ago. At least it didn't appear to be hurting from the recession as much as some of the big cities are. But then I understand the rural areas are getting and spending more of the funding than the urban areas for a number of reasons (see excert from article below). And yet urban areas are where most of the unemployed live, which might help explain why the unemployment rate is still high and the recovery is so slow.

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