New Study Shows How The Stimulus Money Was Wildly Misspent And Could Have Been Way More Effective – Yahoo Finance
By Larry Downing
Barack Obama smile moments after he signed the American Recovery and Reinvestment Act Bill next to U.S. Vice President Joseph Biden at the Denver Museum of Nature and Science February 17, 2009.Since the beginning of the Great Recession, the longstanding canard from the political and economic left has been that the “stimulus” — the Obama administration’s attempt to mitigate 2009’s economic trauma — was too small.A new working paper from the National Bureau of Economic Research takes a look at t he administration’s $796 billion fiscal stimulus known as ARRA, and more specifically at the $318 billion dedicated to state and local governments.
… The research suggests that the refrain that the stimulus was “too small” is misguided, or perhaps incomplete. If anything, the stimulus was poorly allocated.