When Stimulus Does Not Stimulate

Tags: Interventionism, Booms and Busts, Taxes and Spending

07/08/2009 Shawn Ritenour

Obama's stimulus plan is equivalent to a giant welfare scheme. Instead of the money going to lower income Americans, however, it is meant to go to municipal bureaucrats of various stripes. Instead of productive American citizens determining what to do with their own scarce resources, the state is stepping in and dictating how they will be used. Consequently, such spending is essentially government consumption, which is what vulgar Keynesians think we need now more than ever, writes Sharn Ritenour.

This audio Mises Daily is narrated by Floy Lilley.

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