Fiscal Stimulus evidence would soon start to peter out to individuals and small business owners now that President Obama has signed the American Economic Investment and Recovery Act worth more than 700 billion dollars.
But you have skeptics on both sides of the divide – Republicans and Democrats who are questioning whether this is the right move. In case the Fiscal Stimulus policy goes bust, American children would be saddled by a garangutan debt during their life time and America – the land of oppurtunities would ceaze do be it.
Evidence For Fiscal Stimulus
To quote Prof. Romer who is an eminent authority on the effectiveness of fiscal and monetary policy and written tonnes of research work on this subject has come to the conclusion, and mind you this is after due deliberations that the stimulus package she just helped pass may not work.
Wow. The architects of this policy themselves have doubts over it. I am not sure if thats a healthy sign but let’s remember, we have to do something and we don’t know whether it would work or not. But we definitely know that in-action would prove disasterous for us.