Free Markets, Free People

Rendell skeptical about “stimulus”

I’d like to take a moment to welcome Pennsylvania Gov. Ed Rendell to the Keynesian Skeptics Society:

Pennsylvania Gov. Ed Rendell (D) backed the $787 billion stimulus but said Saturday that he isn’t sure whether it will actually fix the economy.

Rendell, at the National Governors Association meeting in Washington, said Saturday that all governors are committed to making sure that the stimulus is used for measures that can boost their states out of the recession. But he said that most governors will be watching to see what kind of effect it has on the economy.

Rendell said he’s optimistic but that “80 percent are waiting to see if this works.”

“It’s a good first step, but the challenges in infrastructure are enormous and we hope that the administration and the Congress will work with us to meet those challenges,” he said. “We’ve just scratched the surface of the infrastructure needs in this economy in the stimulus bill.”

Asked whether another stimulus will be needed, Rendell said, “I think we should see how this works first.”

It’s not a good first step, it’s really a step back. Keynesianism has been tried and failed.

The federal government has already committed $9.7 trillion to solving this crisis and more money spending is on the table. Where does it the end?

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2 Responses to Rendell skeptical about “stimulus”

  • The Economic Recovery Act of 2009 - or more often called the economic stimulus bill – resembles Herbert Hoover’s attempt at bring the US out of economic depression in 1930-31. He made the fatale mistake of giving the money to the 48 states, at that period in history. When they got it it all but evaporated. That is the problem with this piece of legislation. The stimulus money will only help the States in their current budget shortfalls but does nothing to stimulate the economy, create jobs, or help next years cash shortfalls. It is a Presidential repreive from next years death sentences.

    Throwing money at this economic problem is like filling up the car’s gas tank, having an oil change and grease job, putting a new set of tires on, installing a new battery, having it washed and waxed, and then having it towed to the auto wreackers to be scraped. The best thing would be to create an environment for economy to progess, produce and prosper. It will require a complete rethinking of what government should do. The fiasco in California revolves around lucarative pensions payed to retired state workers. America has reached its’ tipping point and no one in government has the courage – or for that matter the intellectual – firepower – to do what is necessary to turn the country around.

    Danny L. McDaniel
    Lafayette, Indiana

  • Where does it end, you ask? The answer in depressingly simple:

    With the collapse of the American economy and possibly the end of the United States.