I previously blogged about the Bush Stimulus package, and it looks like a stimulus bill has just passed by a considerable margin. I just wanted to add a few comments to my initial points:
- Government induced economic stimulus can not work when the government is attempting to stimulate the economy through increased government spending, as this simply represents a future tax burden.
- Government induced economic stimulus is meaningless if they are simply offering temporary benefits and tax reductions--at best you can hope to push the problems of today into the future.
- Real economic stimulus occurs by permanently relaxing government intervention into the market.
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