In recent history, Republicans have proven they can spend taxpayer money just as well as Democrats. When there's no contrast, there's no victory. The opportunity now exists for Republicans to return to fiscal conservatism.
On the verge of a spending spree that will create a trillion-dollar deficit, Democratic leadership will approve rules to skip a required debate on the cost of Medicare. Congress is getting a pay raise. The Treasury has now spent or committed more bail-out money than was authorized by Congress.
And this blogger points out that the economic theory that seems to be driving the upcoming stimulus package no longer applies.
Keynesianism applies in the extremely rare circumstance that there should be deflation, but wages fail to fall. Arguably, this applied during the Great Depression, which is what Keynes was trying to explain. It does not apply today, nor will it ever apply with a remotely competent central bank. Obama’s stimulus package will not stimulate anything; it’s just a trillion-dollar boondoggle. But, the economy will probably recover anyway, and the stimulus will probably be given the credit.
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