World Bank President: Obama’s “Economic Stimulus” Spending Spree Won’t Work
A “sugar high” is what he calls it, meaning that the results will be-short lived to the extent that the “stimulus” spending spree has any impact at all. Which is pretty much what we conservatives were saying all along, wasn’t it? That any “stimulus” that would happen at all would last about as long as the funding would last? And that the debt the spending created would more than office any positive economic impact?
I’m pretty sure that’s exactly what conservatives were saying.
May 30 (Bloomberg) — World Bank President Robert Zoellick warned policy makers that fiscal-stimulus plans are insufficient to turn around the “real economy” and rising joblessness threatens to set off political unrest across the globe.
“While the stimulus has given an impulse, it’s like a sugar high unless you eventually get the credit system working,” Zoellick said in an interview yesterday with Bloomberg Television’s “Political Capital with Al Hunt.” “When unemployment increases, that’s probably the most political combustible issue.”
The Congressional Budget Office actually said this exact same thing. The CBO projected that the economy would recover on its own by the end of this year without any government intervention at all, and actually said that if the “stimulus” spending spree passed it would create a second recession after this one once taxes were raised to pay for all the spending.
And they will be raised. They’re going to have to be if Obama keeps spending like he’s spending.
