The American Recovery and Reinvestment Act of 2009 economic stimulus was an unfocused series of compromises that had a modest stimulative effect on economic activity. Indeed, no matter how haphazardly you dump a trillion dollars on the US economy, it will goose employment, industrial production, retail sales and GDP. Its hard to spend that much money and not have an impact.
The limitation of most of these spending increases and tax cuts was that they had a temporary effect: As long as the money flowed, they were stimulative. Once the spending stopped, the stimulus stopped also.
To read the full, original article click on this link: 7 Ideas To Stimulate The U.S. Economy That Will Actually Work
Author: Barry Ritholtz
