A stimulus planned during a recession is supposed to stimulate the economy with minimal cost. It must do so quickly, if it is to be practical.
That is why a quick tax cut on all income always works, Why tax cuts on capital gains always works. And why corporate tax cuts are tremendous boosts to an overall depressed economy.
All are genuine job generators. Experience shows they work quickly and are thus practical, not effective after the eventual, normal recovery would have occurred. After all, there are frequent cycles in an economy. They are normal.
In addition, a real stimulus will not change the country’s political and social infrastructure.
The stimulus should not be an excuse to provide political payoffs. A stimulus is not supposed to promote voter turnout in future years or change the form of government. And it certainly should not cause inflation for our children and grandchildren to bear in the distant future.
To some politicians, a stimulus is merely the hope of political opportunity.
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