Stimulus: FAIL

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The economic stimulus package failed to stimulate the economy. Just as any sane economist would tell you, including Maynard Keynes himself would say, increasing spending during an economic downturn does not help the economy.

6.3 million people are out of work who were promised work under the stimulus. (link) If we hadn’t passed the stimulus bill at all, we would have been in far better shape.

If we had taken the Hayek approach by dramatically cutting the size of government, the spending, the regulations, and taxes, we would have been out of it all by now. That’s what we did in 1920, and it lead to the Roaring 20’s. The only thing that could stop the Roaring 20’s was an increase in the role of government.

The way to stimulate our state is to try Hayek’s approach. Cut, today, the size of our state government, the regulations, the taxes. Try giving freedom and capitalism a chance to do its thing, without shackling it with socialist policies.

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