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Stimulus won't work

Written by Rosa Colucci on .

Except for the Internet bubble years of 1999-2000, the federal government has run budget deficits (not including Social Security) every single year since President Richard Nixon proclaimed "We are all Keynesians now."

During almost all the boom years, we ignored Keynes' advice to run surpluses, but now when facing a depression we expect Keynesian deficit spending to save us. It won't work, and don't blame it on Keynes. He never said "borrow megabucks from China during expansions and then just print money during recessions."

Printing dollars to pay for stimulus will eventually lead to runaway inflation and completely undermine international faith in the dollar. Hyperinflation can cause depressions as easily as deflation.

If we want tax cuts, let's close our overseas military bases and give that money, dollar for dollar, back to the taxpayers. If we want solar power, let's stop corporate welfare programs like corn ethanol. Rather than printing money, let's change our priorities.

TITUS NORTH
Squirrel Hill

 

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