Showing posts with label Keynsian solutions. Show all posts
Showing posts with label Keynsian solutions. Show all posts

August 6, 2010

ARRA Stimulus Failure

[NOTE: I'm only posting today quick posts as a result of my schedule, more detailed posts are sure to return at some point.]

$787 billion buys you not much of a recovery.  Let's get that into the history books.  In fact let's put it in there that that level of stimulus as a percentage of GDP, as put forward in the details of the ARRA will net you an unemployment rate 2 percentage points higher than promised, a quarter or two if GDP spike and then a drop off to tepid GDP growth after the money fades, and perhaps even a double dip recession (it remains to be seen).
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