Does Stimulus Spending Work?

Economics professor Antony Davies answers the question of whether increased spending by the US government increases gross domestic product in the short term. Using data relating government spending to economic growth, he concludes that government expenditures have a slightly negative effect on growth. Far from being a solution to economic downturns, increasing spending might exacerbate the problem.


Are You Making Money Despite Washington’s Folly? Join the winning team of stock pickers with Wall St. Cheat Sheet’s acclaimed premium newsletter.