Tuesday, March 09, 2010

Thomas Sowell: "Stimulus or Sedative"

Everything economist Thomas Sowell writes is worth reading. In his article "Stimulus or Sedative" Sowell writes,
The stimulus spending started back in 2008, during the Bush administration, and has continued under the Obama administration, so it has had plenty of time to show what it can do.

After the Bush administration's stimulus spending in 2008, business spending on equipment and software fell -- not rose -- by 28 percent. Spending on durable goods fell 22 percent.

What about the banks? Four months after the Trouble Asset Relief Program (TARP) poured billions of dollars into the banks, the biggest recipients of that money made 23 percent fewer loans than before. A year later, the credit extended by American banks as a whole was down -- not up -- by more than $20 billion.
Please take time to read his short, but excellent article at OneNewsNow.

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