As we have noted previously, all historical comparisons demonstrate that "stimulus" spending completely, totally and utterly fails to improve economic growth and reduce unemployment. Yet despite the fact that no country has ever spent its way out of recession, politicians in Washington DC still want to continue with the failed policies of the past.
International comparisons are now starting to trickle in as to the results of the recent "stimulus" packages. And, surprise surprise, what do we find. As the Wall Street Journal today reports, "France [was] among the countries in Europe that resisted Treasury Secretary Tim Geithner’s imprecations to join the U.S. on the megastimulus bus, and on present evidence this fiscal restraint does not appear to be hurting their chances for recovery." To the contrary, while the U.S GDP fell in the last quarter, the French GDP actually rose slightly.
The evidence is irrefutable. Stimulus spending has failed, is failing, and will fail. It’s as simple as that.