How does increased government spending end a recession?

Question

Isn't this just taking money out of your front pocket, and putting it in the back pocket? Oh, and losing much of it to bureaucracy along the way.

Cash for Clunkers paid $4,500 of our own money to buy a new car. But it cost $24k per car to do so. How does this stimulate anyhting?
http://money.cnn.com/2009/10/28/autos/clunkers_analysis/

The last of three stimulus bills cost $857 billion.

"We've looked it over, and even we can't quite believe it. There's $1 billion for Amtrak, the federal railroad that hasn't turned a profit in 40 years; $2 billion for child-care subsidies; $50 million for that great engine of job creation, the National Endowment for the Arts; $400 million for global-warming research and another $2.4 billion for carbon-capture demonstration projects. There's even $650 million on top of the billions already doled out to pay for digital TV conversion coupons."

How many of the above listed created a job?
http://online.wsj.com/article/SB123310466514522309.html

http://www.youtube.com/watch?v=aEdXrfIMdiU
JFK cut taxes to end a recession. Wasn't he the hero of the Democrat party?

Answer 1

The answer is simply it can't. Elections have consequences and boy the election of Obama is costing the working American a fortune as he attempts to redistribute the wealth from those that work to those that don't, after all its only fair. It simply looks like Obama and the idiots in the Democratic Congress are trying their very best to bankrupt the country. They actually think that by printing more money it will resolve our economic problems.



They are handing out billions and billions of worthless dollars our kids will have to pay for some day assuming there's a country left. Unemployment is rising to levels unknown since the great depression and what do you think they do ..........add trillions more in debt with some stupid government health care. God what is wrong with the idiots in Washington!!

Answer 2

Spending by the Government will actually prolong our current depression.The problem is over site and corruption. The money went to used car salesman. We are in deep trouble. Now the health care bill is going to be shoved down our throat. This is just the beginning of the end of freedom of choice.



What actually will happen is a wider gap between the classes. Hard working people will still work hard. The lazy will get lazier and smoke legal dope. Then the lazy will complain about unfair. Same status quo.

Answer 3

the employer climate now's such that no you will plan for something. there has been no constructive path taken with the help of the present administration that has no longer been damaging to employer. presently there is often the threat of a capital constructive factors tax enhance. that could desire to have been executed already if Obama had his way. Capital investment is volatile. increasing that tax will enhance possibility. in case you upload a loss of sales, larger government expenses and the stable threat of a tax enhance that would not practice any incentive for investment. meaning agencies can't borrow funds. meaning agencies could desire to have funds obtainable with the intention to meat expenses and make payroll. There should be much less of their treasury invested. enable's hear a financial genius clarify how raising taxes will stimulate activity boom. How will greater undesirable people initiate their agencies and get that trickle financial device began?

Answer 4

A third of the stimulus went to States to pay for teachers that they can't afford. Who's going to fund these jobs next year and the year after? Stimulus II and III? The utter morons in Congress and the buffoon in the Whitehouse are only prolonging this recession.

Answer 5

With smoke & mirrors?

Answer 6

It doesn't, but what it does do is lessen the impact of the recession, and hopefully shorten it.

Answer 7

it doesn't