Stimulus is a political tool and nothing else. Stimulus provides politicians a way to reward the parties who support their essence and make their acquisitions of more power possible. The cost to the overall population is staggering.
Thinking is not allowed in economics if one wants to get paid. Since I am doing this for nothing, I can think to my hearts content. You can think also provided your life and income do not depend upon your not thinking.
Stimulus does have an effect on the economy but it is not the ostensible effect that is the stated goal of the initiative.
So, does the economy need to be stimulated with monetary policy or fiscal policy now or at any other time? The answer is yes if you are a politician, the actual recipient of the initial money or an average citizen who unwittingly believes anything he is told.
It is understood and acknowledged, even by economists, that any stimulus program must be completely objective. In order to be objective, an economic decision is completely necessary. Given that governments can only make political decisions, objectivity is not possible.
How, is it known that stimulus needs to be implemented? That requires a reliable forecast? When was the last time economists, even the best in the world have made reliable forecasts? This is a skill economists don’t have.
Any stimulus is added at a time when all are clueless as to what is coming next.
Stimulus is provided regardless. The money is always used by the initial recipients to make as much money as they possibly can in the shortest period of time. Hence, our current stock market bubble.
Are you studying economics? Show this to your professor and ask if he agrees. Ask Gerome Powell if he agrees? Then ask, if either cares to debate me. What I am telling you hear is self evident,. So, is it possible for anything to be self evident? According to the U.S. constitution the posture of self-evident is completely viable.
“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.”
So, here comes the next round of stimulus? Who benefits and who loses?
The truth is a hard sell. Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness.
Fantasy Free Economics recommends the following blogs.
Woodpiler Report Of Two Minds Liberty Blitzkrieg Mises Institute Straight Line Logic Paul Craig Roberts Straight Line Logic