Thursday, February 19, 2009

The Stimulus Not Working?

The answer will be to print ever more money.  There seems to be a reason some are calling this the porkulus: Editorials, Political Cartoons, and Polls from Investor's Business Daily -- Just A Beginning?

Economy: Seven-hundred eighty-seven billion dollars apparently
doesn't go as far as it used to. Even before the ink was dry on the
stimulus bill, the president and his deputies were hinting it may not
work as promised.
So what can explain all this cold water? As we see it, there are four possibilities:

1. The administration discovered in the past couple of days that the economy is far worse that it thought. Unlikely, unless the economic team doesn't know what it's doing.

2. The administration has seen what it can get by scaring the public, so why not try it again? With much of its long-term spending agenda enacted, a few more months of catastrophe talk and it could even score nationalized health care. Maybe, but we hope that's far too Machiavellian for this crew.

3. The president and his team have spent so much time and energy talking down the economy that it can't seem to stop. As Obama might put it, "Old habits are hard to break." This is within the realm of the conceivable.

4. The most likely explanation: The administration is quietly coming to understand what critics of the bill knew all along. It spends huge sums of money, but does so in ways that will do little to stimulate the economy in the short term.

If true, it would amount to the most expensive learning curve in the history of mankind.

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