Do stimulus packages work? Are we spending the money wisely?
Whilst I don’t profess to be an economist (maybe that is a good thing) I have read and listened to a number of Nobel laurate economists the question is do the stimulus packages work? The USA have recently passed their second stimulus package since the crisis started, Australia has also passed their second package and China is looking at a second stimulus package. Japan in the 1990′s and early 2000′s passed NINE packages in 11 years to no avail.
Whilst there are some to who say they do work, there are plenty of qualified economists who doubt the impact of them.
From my personal viewpoint is that not enough of the stimulus packages (particularly in Australia where I live) is being spent on innovation. The future of our nations will not be built on cash handouts or tax cuts to spend but rather we need to invest in innovation so there is a long term legacy. The trouble is the handouts are politically easier, whereas innovation is harder to see. The country reaps the benefit of innovation down the track.
Do you think these stimulus packages should have been passed? Do you think the money is being spent in the right area?
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