Dedicated to all things economic and financial.

Monday, October 20, 2008

Throwing more money at the problem

While it originally seemed a spot-on political impersonation worthy of Tina Fey, the Congressional Democrats' proposal for another economic stimulus package in recent weeks has actually won support from President Bush and Ben Bernanke. This would make the second stimulus package in a single year, and (I admit, I've lost count)--how many for President Bush's term in office?

In real life, I'm a history professor, and while teaching ancient Rome this semester, I got a feeling of deja vu when talking about the Roman Republic's devolution into Empire. Caesars found it easier, and presumably cheaper, to assuage the sufferings of the urban poor by creating a public dole of free daily bread.

The habit of sending out packets of spending money from public coffers, without a plan to recoup such losses through tax receipts, will prove a hard one to break. In the future, what politician will be able to refuse when such calls turn into demands? It seems just as likely to create a bidding war to see who can pledge the most "stimulus" funds, as well as growing public dependence upon such measures.

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