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Obama’s Stimulus:The Same Old New Deal

January 30, 2009

The House of Representatives have just past this enormous spending bill disguised as a stimulus bill. How is this bill supposed to stimulate the economy? Of the 825 billion only 275 billion is going to tax cuts the other $550 billion is spending. The feds are sending over half the stimulus money to state and local government and health and education. These are areas with the lowest unemployment, 2.3% and 3.8% respectively. Another 22.5 % of the $550 billion is being spent on social programs.(1). When you get right down to it 2/3 of the bill is pork and the other third is stimulus. These so called government stimulus plans failed in the 1930’s, 1970’s and will fail again. The only thing this plan will succeed in doing is making government bigger. As Milton Friedman concluded about the New Deal it…“hampered recovery from the contraction, prolonged and added to unemployment, and set the stage for ever more intrusive and costly government.” We can expect the same.


(1)$646,214 Per Government Job by Alan Reynolds in WSJ

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