So does government spending stimulate the economy? YES and here is the numbers

[HappySqurriel]

Teo said:

mrstickball said:
....Because MoveOn.Org is the most intelligent, thought out PAC in the universe, right?

Sorry, I'd rather take my economics from a guy wearing a sandwich board than MoveOn.

Maybe you should take your economics from a... economic class and not a political party.

ECO 101: Government spending is used to stimulate the economy. The Fed exists for a reason, it was created when congress wanted to see our country succeed, not fail for political points.

A solid economics class will point out that, while Keynesian stimulus has been tried in dozens of economic downturns, there is only one data-point (World War II) which demonstrates it working; and even then it could be argued that other factors (the building of a large, technologically advanced private manufacturing sector) lead to the economic recovery.

As I explained earlier, the multiplier effects associated with stimulus spending fail to account for the negative mutiplier effects of taxation and build up government debt.