Washington Logic

by Ryan Young on April 21, 2009

in Economy, Politics as Usual, Stimulus to Nowhere

The thinking behind the Bush-Obama stimulus runs like this: if people aren’t spending enough money to keep the economy afloat, then government should increase its spending to make up the difference. It’s conventional Keynesian theory.

Surprising, then, that President Obama asked federal departments to find $100 million dollars in cuts.

Does that mean that a $787 billion stimulus package is too much, but $786.9 billion is just right?

And that the projected $1.75 trillion budget deficit is too much, but $1.7499 trillion is ok?

Washington logic sure is strange.

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