Measuring the "Stimulus"

Wednesday, October 14, 2009 1:20 PM

Richard Rahn had a piece in yesterday's Washington Times outlining how one might measure the success  or failure of the "stimulus" package.  Rahn establishes three criteria by which this can be judged: 

1. what we were promised
2. how we're doing compared to states that had no or smaller "stimulus packages
3. against the background of the competing political theories (Keynesianism vs. Austrian Economics)

Not surprisingly, the verdict is: failure on all three fronts. We're still losing jobs and the unemployment rate is actually higher than what the Administration claimed it would be absent the "stimulus," countries with smaller "stimulus" packages are recovering faster, and the theoretical approach of Keynesianis doesn't hold.  Says Rahn:

The only things one can say for sure about stimulus money is that it will add to the deficit, ultimately driving up interest rates and taxes; and much of it will be wasted and/or stolen, neither of which benefits the unemployed. By any objective measure, the stimulus program has been and will continue to be a failure - but don't expect the Washington politicos ever to admit it.

Nonetheless, there are still many out there trying to sell more of this "stimulus" snake oil.

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