Writing for The Hill, I explain why Keynesian‐style stimulus does not work. In addition, I note that the so‐called stimulus was just an excuse for pork‐barrel spending. But my concluding point, excerpted below, is that the White House goofed politically by making specific claims about the good things that ostensibly would happen by increasing the burden of government spending:
The only surprise was that the White House was foolish enough to make specific claims of the good results that supposedly would flow from all the pork‐barrel spending. In part, this is the absurd notion of claiming 600,000-plus “jobs saved or created” when total employment actually has fallen by more than 3 million. But the bigger mistake was claiming that the faux stimulus would keep the unemployment rate from rising above 8 percent and that failure to squander $787 billion would cause the jobless rate to climb to 9 percent. The politicians got their wish, yet now the unemployment rate is above 10 percent. Brilliant.