“According to Keynesian theory, a $1.4 trillion budget deficit should have immediately overheated the economy. According to the White House, the stimulus should have created 3.3 million net jobs. Instead, the economy remained in recession and 3.5 million more net jobs were lost. By every reasonable standard, the stimulus failed.” (Brian Riedl). More than that: it delayed the recovery.
What’s the government solution? You guessed it: another stimulus, drawing resources out of private hands (which create productive jobs) and posturing government action and compassion, ready for the day when the economy will pick up on its own.
Well-meaning politicians... God bless them.