Stimulus Plans Raise National Debt For Dubious Benefits Now
In the real world, artificial stimulus may not accomplish anything at all other than driving up national debt. That pretty much sums up what transpired in Japan.
Oh sure, if the government gives away enough money, government could easily cause hyperinflation, in theory. However, that would not create any economic activity that anyone wants. Nor will it be tried because it would destroy banks.
Moreover, all this talk of multipliers is nonsense. If government spends money in a manner that private industry would not, the multiplier is far less than 1, and perhaps even negative.
Case in point: There are numerous road construction and repaving operations where I live. The thing is, most of the roads did not even need repair. Money came in for roads, Obama said use it or lose it, so the roads were "fixed". Now what?
They can "fix" every road in the country that does not need fixing and as soon as the roads are fixed, we will be back at square one, in need of still more stimulus.
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