Tuesday, August 31, 2010

Fed Stimuli = Electric Shock Therapy

As the title is supposed to suggest, Federal stimulus programs that consist of spending are about as effective as that now-universally discredited method of psychotherapy, and about as insane.

Here's a bit of real world data to keep in mind when you hear Krugmanites tout Federal spending as an economic stimulus:
Big spending is another economy-killer. A recent OECD study noted that for every percentage point increase in spending among the nations studied, per capita GDP fell by 0.3% and investment by as much as 0.4%. So more government "stimulus" cures nothing.


Katrina said...

Sorry, but I have to mention that ECT is a completely valid, well-established, commonly used treatment for severe psychiatric problems. The way pop culture portrays ECT is a complete fraud which leads people to think it's some kind of barbaric torture, but it's not. It can be an effective treatment in otherwise hopeless cases and 1 million people use it every year.

Jeff Perren said...

I stand corrected about it being universally discredited.