Government Spending Stimulates the Economy
There are many who believe that including provisions for welfare programs in a stimulus package would not stimulate the economy. Not surprisingly, many economist, including Congressional Budget Office (CBO) director Douglas W. Elmendorf and Mark Zandi, the chief economist and co-founder of Moody’s Economy.com, who was reportedly a McCain campaign economic adviser — have stated that, in Zandi’s words, “aid to financially-pressed state governments” is an “economically potent stimulus.”
In testimony before the House Committee on Small Business, July 24, 2008, Zandi included with his written testimony the following chart:
_
You can see that “General Aid to State Governments” would boost real GDP by $1.36 for every dollar spent, while “Extending UI [unemployment insurance] Benefits” and providing a “Temporary Increase in Food Stamps” would increase real GDP by $1.64 and $1.73 per dollar spent.
Like this:
Like Loading...
Doves, Lightening, Hiking
Kate and Jaxon
Virginia & Jim At The Hunter Trail Saddle
Queen Butterfly
Sycamore Reservoir
Queen Butterfly
SCVN Weds Walk 08-01-12
Friday with Friends & Molino Basin to Prison Camp
Cactus Wren
Audrey, Joy, Hannah and Kenne
La Milagrosa Loop Hikers
Chase & Grandma Joy
Domingo DeGrazia’s Spanish-guitar band
Ed On Marshell Gulch Trail
Carpenter bee on sneezeweed
Turkey Vulture at Tanque Verde Wash
Mountain Spiny Lizard
Southern California September 2012
Queen Butterfly
All Souls Procession
Government Spending Stimulates the Economy
There are many who believe that including provisions for welfare programs in a stimulus package would not stimulate the economy. Not surprisingly, many economist, including Congressional Budget Office (CBO) director Douglas W. Elmendorf and Mark Zandi, the chief economist and co-founder of Moody’s Economy.com, who was reportedly a McCain campaign economic adviser — have stated that, in Zandi’s words, “aid to financially-pressed state governments” is an “economically potent stimulus.”
In testimony before the House Committee on Small Business, July 24, 2008, Zandi included with his written testimony the following chart:
_
You can see that “General Aid to State Governments” would boost real GDP by $1.36 for every dollar spent, while “Extending UI [unemployment insurance] Benefits” and providing a “Temporary Increase in Food Stamps” would increase real GDP by $1.64 and $1.73 per dollar spent.
Share this:
Like this: