The first half of this year saw a frenzy of enthusiasm and excitement. The government was doing something unprecedented: It was giving us some of our money back. The idea was that we would get the check, cash it, spend it on stuff, and in so doing we would stimulate the economy. Many Americans got their checks, cashed them and filled their gas tanks, bought food and other necessities, or they paid down debt. The stimulation received by the economy was minimal at best, hardly worth the cost—you can see that very plainly today—and yet, with that little piece of history and all of its attendant lessons still so shiny and new, what are we hearing from the Congress and the Federal Reserve? You guessed it: Let's float another $150 billion stimulus package!
According to Congressman Barney Frank (D-MA), chair of the House Financial Services Committee and one the key architects of the current economic crisis, “the new package would help states pay for stalled infrastructure projects, a... [Read Full Article]