New study shows zero impact of $800 billion stimulus
There have been other studies hinting at the same thing, but this one by John Cogan and John Taylor of the Hoover Institution appears to be pretty solid.
[quote]In September 2009, we reported on this page empirical research showing that the temporary tax rebates and transfer payments in the Bush and Obama administration’s stimulus programs were ineffective. Here we consider new data on the impact of increases in government purchases, which were heralded as a major stimulating factor in the Obama package.
Although the policy debate has mainly focused on the multiplier’s size, data covering the first year and three quarters of the 2009 American Recovery and Reinvestment Act (ARRA) show that, despite the large size of the program, the dollar volume of additional government purchases that it has generated has been negligible.
This was pretty obvious to me, through the number of people I know who have been through - or are going through - being laid off and the traffic I don’t but should see during my daily commute. Sadly, Libs and Progs won’t look any further than the name, “Hoover Institution,” for a pretext to ignore what they don’t want to hear.