Wednesday, 1 September 2010

U.S. Fed Stimuli = Electric Shock Therapy

Guest Post by Jeff Perren.

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.

2 comments:

  1. Poor comparison, PC. Electric Shock Therapy (or more correctly Electroconvulsive Therapy) is neither insane, ineffective, or a form of psychotherapy.

    As such, it is far more effective than a Fed Stimulus.

    I know which I would rather have...

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  2. the drunken watchman1 Sep 2010, 22:49:00

    universally discredited?

    Electric shock therapy is still being conducted in some New Zealand hospitals in cases of extreme depression

    Personally I'd rather have a bottle in front of me ....

    ReplyDelete