The bloated $800 billion “stimulus” package would not only create a mountain of debt, it would harm the economy in the long run. Congressional leaders claim that their pork-filled “stimulus” plan would help the economy, but the Congressional Budget Office admits otherwise. It predicts a smaller economy in 10 years if the stimulus plan is enacted.
Why, then, do Congressional leaders (and Obama) support the stimulus plan? Because it might ever-so-slightly reduce unemployment over the short run, helping them get reelected in 2010 and 2012. They are willing to bankrupt the country for their own political gain. The stimulus package is chock full of political pork for liberal constituencies.
A similar stimulus package in Japan failed in the 1990s, adding trillions of dollars to Japan’s national debt, and producing economic stagnation, in a period known as “The Lost Decade.”
It’s not clear whether Congressional leaders will be able to fool the public about the need for this “stimulus” package. Polls show that most people now oppose the “stimulus” package. So do large numbers of economists.