My Argument Against Stimulus Spending
Here is a paper I recently wrote against stimulus spending for my American Dilemmas class at St. Edward’s University. I don’t really like the required format of the paper, so I may change it a little for publication. I appreciate any criticism.
Should the Federal Government Use Stimulus Spending to Help the Economy Recover?
According to figures released by the government, real gross domestic product (GDP) –that is, the amount of goods and service produced in the United States—decreased by an annual rate of 3.8 percent in the fourth quarter of 2008 (BEA1). This figure is not terribly alarming compared to the 13 percent drop in 1932, the worst year of the Great Depression (BEA2). However, the most interesting data that I encourage the reader to keep in mind while reading this paper are the following: before New Deal government spending took effect in 1932, government expenditures and investment accounted for 14.8 percent of GDP; for the most recent data available in the fourth quarter of 2008, that number stood at 20.4 percent (BEA3).
