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The Failed “Stimulus”




On February 16, 2009 this website addressed the economic “stimulus” plan that U.S. President Barack Obama would sign into law the following day.

“It is, quite simply, the worst possible response to our current economic crisis that America could have come up with – making its taxpayers fund an unprecedented bailout of failed bureaucracies at every level of government with money we don’t have,” we wrote at the time.

Of course we didn’t limit our criticism to Obama … we blasted the GOP for its wild embrace of Washington, D.C.’s Keynesian culture as well.

“Republicans have rightly washed their hands of this monument to central planning, but let’s not forget it was a Republican President who started us down this road – or that it was Republicans who failed to reign in spending when they had the chance, thus creating the liberal blitzkrieg we are currently witnessing,” we added.

Truth …

Anyway, this week marks the fifth anniversary of the Obama stimulus – an occasion The Wall Street Journal marked with a brutally candid assessment of its failure to “stimulate” anything.

Specifically, The Journal notes how economic growth over the last four-and-a-half years has averaged just 2.4 percent per quarter – well below the 4 percent growth seen during the non-stimulated recoveries of the 1980s and 1990s.

What went wrong?

“The failure of the stimulus was a failure of the neo-Keynesian belief that economies can be jolted into action by a wave of government spending,” the paper wrote. “In fact, people are smart enough to realize that every dollar poured into the economy via government spending must eventually be taken out of the productive economy in the form of taxes. The way to jolt an economy to life and to sustain long-term growth is to create more incentives for people to work, save and invest. Let’s hope Washington’s next stimulus plan is aimed at reducing the tax and regulatory burden on American job creators.

Exactly …

Too bad Obama and the majority of congressional “Republicans” still don’t get it …

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