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Politics : Formerly About Advanced Micro Devices
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To: tejek who wrote (853270)4/30/2015 1:15:31 PM
From: TimF  Read Replies (2) of 1576889
 
Yes, stimulus is good when everyone is cutting back

In theory (or at least certain theories) yes. In practice not quite as much. For one thing there is a delay to recognize the downturn, then a delay to develop and pass a political response, a delay to get programs rolling, and then a delay before they actually start spending much of the money. By the time significant amounts of extra money get spent (other then the "automatic stabilizers like unemployment insurance that are already in place and don't need political decisions and new program creation) the deepest part of the recession, and sometimes the whole recession, is past.

Another problem is that you get a push for stimulus, but then when you get good economic times there isn't the equivalent push to roll back spending.
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