Stimulus spending is a good approach for trying to turn around an economy. It gives a boost to most households and then a boost to the economy. I'm not sure if it can work for us right now but it has worked in the past as a basic jumpstart approach.
Stimulus spending is an effective approach. Anything that places money into the pockets of families can only help the economy. Most of the stimulus money is then spent for extra food and groceries and placed back into the economy. Some people hang onto it for a rainy day, however, anything that promotes cash in hand is always a good thing.
Stimulus spending is an effective short term approach in strengthening the economy. It is only a good short term approach because in the long term, it will create a very large deficit in the government, which increases the national debt and worries consumers and investors about the strength of our government.
Somehow as a culture we in the United States are told that spending is the answer to everything. That is said, even though over spending is what got us into this big mess with credit and housing and a lot of other things. We need to rethink our philosophy and change it to prudence.
All the corporation bailouts did was give the rich more money to hand each other. I am so sick of the government giving the rich and big corporations government welfare. They already possess most of the money in the country, and yet the government hands them billions more dollars every year. It needs to stop!