Why So-Called Stimulus Spending Doesn't Work
Look, stimulus spending canât work, because of one of three things happens:
1. That extra spending means extra taxes which means the whole thing is a wash. (Government spending having some âmultiplierâ effect unknown to consumer or business spending is a big, fat lie.)
2. That extra spending means extra debt, which drives up interest rates, which chokes off growth.
3. That extra spending means extra money being printed, which means inflation which means any growth is illusory.
Of course, thereâs no rule saying you can pick only one result.