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silatix

economy in crisis..

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How do we know the stimulus is too small despite not having spent much of it? Anyone?

 

How about by means of forecasting. 'For every dollar spent, expect x amount of reduction to unemployment, with a confidence interval of z.' Kinda an important line of work in government economic circles. There was an estimate early in the game that, this far into the stimulus spending, unemployment would reach pretty much exactly current levels if it was kept to half what it should've been. They were bang on target. The smaller stimulus was a political decision that, on balance, unemployment is a more palatable political sell than increasing the deficit. Palatable, yeah, but an ugly compromise and not optimal government.

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How do we know the stimulus is too small despite not having spent much of it? Anyone?

 

How about by means of forecasting. 'For every dollar spent, expect x amount of reduction to unemployment, with a confidence interval of z.' Kinda an important line of work in government economic circles. There was an estimate early in the game that, this far into the stimulus spending, unemployment would reach pretty much exactly current levels if it was kept to half what it should've been. They were bang on target. The smaller stimulus was a political decision that, on balance, unemployment is a more palatable political sell than increasing the deficit. Palatable, yeah, but an ugly compromise and not optimal government.

 

Oh Jesus, man. I thought this thread was finally going to die :). I was about to roll the credits and show the IATSE logos.

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