Sunday, May 18, 2014

Steve's barking: What stimulus

Every time I hear the term the stimulus didn't work my blood pressure rises 10 points.
Replacing partially what is lost does not a stimulus make.
Buying bonds from banks and having the same bank hold a big reserve does not a stimulus make. All the banks are doing is replacing bonds with cash.

A true stimulus would be doubling the minimum wage.
A true stimulus would be hiring more government workers at high wages.
A true stimulus would be fixing the infrastructure with high wage earners.

The first suggestion doesn't cost the government anything.
The second suggestion would be payed for by grater tax revenue of having more people with the ability to buy more goods and services from the private sector.
The third suggested stimulus would pay for itself by cheaper energy and less ware and tear on tires and ease of transporting of goods.

I'm really tired of dumb a** economics who use gigo statistics to justify there points.

* Computer term garbage in garbage out.


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