My internet has been down the past couple of days, so I had to resort to "old-fashioned internet" (namely newspapers and magazines) and I came accross this article ( http://www.businessweek.com/magazine/content/09_45/b4154034724383.htm?chan=magazine+channel_top+stories )
The first graph really demonstrates what the stimulus has done ... The private sector continues to bleed jobs as the public sector balloons. The problem that most Keynesian economists don’t seem to understand is that the public sector is a parasite of the public sector, and if it becomes too large it will kill off its host; and in the process it will kill itself off. Right now the Federal government is going to run a $1.5 Trillion deficit in 2010 which works out to being (roughly) $15,000 per household in the United States; and further stimulus spending along with expanded social spending will only make this dramatically worse.
To make matters dramatically worse, most of the government debt has been moved to shorter and shorter term bonds (to keep interest payments low) and when the federal reserve moves interest rates higher to fight inflation the government deficit will explode due to carrying costs.
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Within the next 12 to 24 months the United States could hit an economic tipping point where interest rates and taxes simultaneously skyrocket, and any company with intelligent management will flee for "greener pastures" ... at that point who is going to pay for all these social programs?
