Why So-Called Stimulus Spending Doesn't Work

Look, stimulus spending can’t 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 “multiplier” 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, there’s no rule saying you can pick only one result.

via Vodkapundit » The Grand Unification Theory of Sucking.