Seven reasons why the Stimulus Package won’t work
Many Americans like Gloria Clegg of Sugar Mill have mixed feelings about President Obama's Stimulus Package when she says, “I have no idea if it will work, but I sure hope it does.”
Intuitively, it would seem that if you throw enough money into the economy it would help things. However, this money-throwing exercise has been tried many times and there is no evidence that it has ever helped the general economy. Why is that so? There are at least seven good economic reasons why throwing money at an economy will not help things: