[gampy]

I have heard a lot about the US trying out a stimulus package, but what exactly are these things? How does a government increase or speed the growth of an economy through increased spending or reducing taxes, or both?

Are they talking about something akin to the massive public works spending from the 30's? More Hoover dams, and highway infrastructure?

Sorry if this seems like a dumb question, or naive, but how can a government "stimulate" an economy by spending even more, and increasing government debt?

I dunno, hopefully someone can describe the idea behind these schemes that might make sense.

[Tyler_JC]

$this->bbcode_second_pass_quote('gampy', 'I') have heard a lot about the US trying out a stimulus package, but what exactly are these things? How does a government increase or speed the growth of an economy through increased spending or reducing taxes, or both?

Are they talking about something akin to the massive public works spending from the 30's? More Hoover dams, and highway infrastructure?

Sorry if this seems like a dumb question, or naive, but how can a government "stimulate" an economy by spending even more, and increasing government debt?

I dunno, hopefully someone can describe the idea behind these schemes that might make sense.

[heroineworshipper]

Dollars R going to be revalued to keep up with rising prices. There is not enough money in circulation to pay for the last 4 years of housing inflation. The media pegs the shortage of cash at $500 billion. Personally feel it's more like $50 trillion.

[seldom_seen]

The need for a "stimulus package" arises from the desire of the government to look like it's "on the job," and "helping out the little guy" as the economy tanks.

It's a PR stunt by the government to appear like it's actually doing something for you and not a multinational corporation or a bank.

They did one of these sometime after 9/11. I think everybody got like a $500 tax rebate or something. Now look how FUBAR'd we are...it obviously didn't work.

If you do end up on the receiving end of a "stimulus package" be sure to bend over and grab your ankles tightly...hehe...really though, use it to pay down any debts or convert it to tangible assets like food stores, gold, ammo or something useful...

[SchroedingersCat]

You stuff a banana down your pants, go to the local bar, and tell the ladies "I got your stimulus package right here!" Pretty much what the government is doing with the economy. It's all make believe.

[americandream]

Given that this lot in government are avid small government advocates, whose paying for this package....are they going to be forking up to cover their evident failure at managing the economy or will the suffering taxpayer have to carry the can?

[seldom_seen]

$this->bbcode_second_pass_quote('americandream', 'G')iven that this lot in government are avid small government advocates, whose paying for this package....are they going to be forking up to cover their evident failure at managing the economy or will the suffering taxpayer have to carry the can?

[gampy]

The only stimulus I can see happening is the to the only manufacturing base left in the US. The arms industry and the military.

I guess that big sale to Saudi Arabia was the real impetus for GWB's visit to the area. Peace? nah....more war to prop up the only manufacturing really left in the US.

[frankthetank]

Giving money away won't work. It'll be quick shot and then it will be gone. We need some huge public works project. A big nuclear power plant building boom. Build about 100 of them to "electrify" the masses.

[IslandCrow]

$this->bbcode_second_pass_quote('frankthetank', 'W')e need some huge public works project.

[MrBill]

It is spending money you do not have by going even deeper into debt.

The Greatest InterGenerational Theft Of All Time!

But you target it at the bottom 75th percentile of the working population that are likely to spend that money to stimulate the economy rather than invest it or otherwise save it as the top 25th would likely do.

That increases the money multiplier effect. However, it is unlikely to solve the deeper problem of too much personal and government debt in the first place. It is just a temporary fix.

Building infrastructure is fine, but there is a global shortage of skilled workers. And those that are working do not need the re-training or a stimulus per se. To actually train skilled workers would take years and obviously this targeted stimulus is to stop the US from going into a recession in 2008.

Not too mention that building the equivalent of another interstate highway system like in the 50s - only rail or nuclear - would actually add to inflation as there are already commodity shortages. Or at least the additional supply needed would be stretched to meet the increased demand for those materials. So a weaker US dollar would be making energy, metals and commodities more expensive in nominal terms, while the extra demand would be increasing prices in real terms.

The US needs a good recession. A bowel cleansing. And then a few decades of living frugally to pay down debt. Is it going to happen? No.

[americandream]

$this->bbcode_second_pass_quote('seldom_seen', '')$this->bbcode_second_pass_quote('americandream', 'G')iven that this lot in government are avid small government advocates, whose paying for this package....are they going to be forking up to cover their evident failure at managing the economy or will the suffering taxpayer have to carry the can?

[Gerben]

$this->bbcode_second_pass_quote('MrBill', 'T')he US needs a good recession. A bowel cleansing. And then a few decades of living frugally to pay down debt. Is it going to happen? No.

[MrBill]

$this->bbcode_second_pass_quote('Gerben', '')$this->bbcode_second_pass_quote('MrBill', 'T')he US needs a good recession. A bowel cleansing. And then a few decades of living frugally to pay down debt. Is it going to happen? No.

[Merlin]

Keynsian economists all believe that, because they are economists after all, they understand what is ailing the economy and how to "fix" it. Economists and governments don't fix economies; free markets do. Austrian economists understand the difference. We in the U.S. need to pay for the sins inflicted on us over the years by the Federal Reserve and the federal government. In the long run, they can't fix anything.

[Chesire]

A stimlus package comes with Viagra and Rohipnol . So the commoners can get fucked long and hard by TPTB and not remember it

[Kingcoal]

$this->bbcode_second_pass_quote('americandream', '')$this->bbcode_second_pass_quote('seldom_seen', '')$this->bbcode_second_pass_quote('americandream', 'G')iven that this lot in government are avid small government advocates, whose paying for this package....are they going to be forking up to cover their evident failure at managing the economy or will the suffering taxpayer have to carry the can?

[Ferretlover]

It's a "payday cash advance" that has an interest rate of 100%, where TPTB use Monopoly money for the loan, but expect real cash for the payback.

[mattduke]

Although congress has been lackidaisical about putting together the "stimulus package", we should all give thanks to those who are printing the perfect counterfeit "supernotes" for their "economic stimulus"! Thanks counterfeiters for supporting the economy!

http://www.kansascity.com/news/nation/story/441167.html

[Zardoz]

We should thank Ben's mom for having him. I get such a warm and fuzzy feeling knowing he's at the controls, guiding us through these perilous times:

Bernanke: Juice the economy 'quickly'

$this->bbcode_second_pass_quote('', 'F')ederal Reserve Chairman Ben Bernanke told Congress Thursday that legislators should enact a fiscal stimulus package in order to help beleaguered consumers as recession fears grow.

The comments by Bernanke, who testified before the House Budget Committee, came as a cascade of more bad news about the housing, financial and manufacturing sectors stoked calls for decisive action.

"To be useful, a fiscal stimulus package should be implemented quickly and structured so that its effects on aggregate spending are felt as much as possible within the next twelve months or so," Bernanke said.