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Has stimulus spending been less effective than it could have been because of safeguards against waste and fraud?

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Jonathan Cohn makes a COUNTERINTUITIVE ARGUMENT about the effects of keeping the economic stimulus program on the up-and-up.

A few excerpts:

A new government report says the stimulus was virtually free of waste, fraud, and abuse. This is supposed to be good news. I’m not so sure.

(Snip)

[E]fficiency isn’t the Recovery Act’s primary purpose. Reviving the economy is. And that’s required spending a vast amount of money very quickly–a goal that, inevitably, is at odds with spending the money carefully. Or, to put it another way, a stimulus that threw a little more money away might have created more jobs.

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3 Comments

  1. lmao….and the dems wonder why they are losing on every front…mostly in the respect dept.,the lies and deceit are amazing,but actually thinking we will beleive it is,….well it just is’nt working anymore for them,thank goodness!!!

  2. Neftali

    Recession spending can be done using the following methods:

    1. Direct “stimulus spending” – By creating jobs through shoving a ton of money at various projects the government deems important for the betterment of society

    2. Unemployment extensions and other jobless benefits.

    3. Job training and education ventures

    4. Tax cuts to corporations and small businesses allowing them to allocate more money into reinvestment, and thus create more jobs.

    Now the Stimulus package was a combination of the 4 above. In fact, I’d guess that most politicians, statisticians, and economic gurus agree that using a combination of the 4 is the best solution. The debate is what percentage of funds should go towards which programs.

    Liberals tend to favor #1 and #2. Conservatives tend to lean toward #4 coupled with spending cuts. I think most everyone is in favor of #3.

    But when the Stimulus has shown in some cases to cost over $200K per job created, you have question if that’s really a worthwhile investment. A combination of the latter 3, with a focus on #4 appears to be the the best way to spend taxpayer money.

  3. Keynes vs. Friedman. Economists a heck of a lot smarter than me still argue this. What we really need is a policy that promote corporations to come to the US, not move away.

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