Proof that governmental stimulus can improve the economy

There are a lot of intelligent posters on this site, many of whom support the second round of $1 trillion governmental stimulus. This talk is an attempt at a positive proof, namely, one which proves that governmental spending can improve the economy rather than disproves it.

$1 trillion is a lot of money. Supposedly enough to send every student in America to college for four years, so we should hold this hypothesis to the same scientific standard we would of any other important theorem. Peer reviewed analysis of any evidence that surfaces here is great, but please don't attempt to disprove the hypothesis in this thread. This discussion serves only as an honest attempt to amount convincing evidence to support beyond a reasonable doubt that this a viable method to lead us out of a depression, and position us on the right track for the future.

That said, does anyone have any theoretical explanations, historical examples, or other data to contribute which supports the hypothesis that governmental spending can improve, correct, or otherwise mitigate an economic downturn?

Load Comments...

Send this Article to a Friend



Separate multiple emails with a comma (,); limit 5 recipients






Your email has been sent successfully!

Manage this Video in Your Playlists

New Blog Posts from All Members