Because it's not a stimulusKeynesian stimulus has never worked. That includes World War II. Yes, wartime production brought us out of the depression, but government didn't create consumer demand, it was the demander. And it demanded tools of war because our existence was threatened. We needed the materiel that our industry produced, and we used it to a good end.
What our government is doing now has stimulated nothing. Government can throw some confiscated money to those barely treading water, but that is not stimulus; it is a palliative.
Political payoffs to failed state and local governments border on the criminal, allowing them to dodge the consequences of their financial malfeasance for a few more years.
Weatherization, windmills and cash for clunkers misallocate resources and distort the market. They cause inefficiencies and delay the creative destruction that ushers in economic recovery. If you want a 21st century economy, you've got to allow the market to prune the 20th century branches.
If Government must get involved...Building a hundred nuclear power plants would come the closest to a government "investment." (For a contrary view, see
John Stossel's blog.) It would put people to work for 5-10 years building something we need. Once built, we would reap the benefits of bountiful home-grown electricity. Unfortunately, we're going the Don Quixote route.
Eat Yourself ThinEconomics professor Mark Hendrickson has written
the best summary on why Keynesian stimulators (
Krugman, Stiglitz, et al) and the Central Planners at the White House are all wrong.
The massive deficit spending of Franklin Roosevelt in the 1930s didn't stop the Great Depression. In fact, despite FDR spending more money in his first five years in office than all 31 prior presidents combined.
His Secretary of the Treasury Henry Morgenthau stated in 1939 that "[w]e are spending more than we have ever spent before and it does not work. ... I say after eight [sic] years of this Administration we have just as much unemployment as when we started ... And an enormous debt to boot!"
He also mentions Japan's failed Keynesian decades and reminds us that economic history did not start in the 1930s. We had crashes and panics before FDR came along, and we got out of them without government intervention. Cato has a very short example
Here.
Read these informative articles and do your part to push back against the liberal fairy tales.
"Spend your way to prosperity" makes as much sense as "Eat yourself thin."