"'We've averted the worst, and there are clear signs the stimulus is working,' said Kenneth Goldstein, an economist at the Conference Board in New York.
"'Cash-for-clunkers was the icing on the cake,' said David Greenlaw, chief fixed-income economist at Morgan Stanley in New York. 'It's well-timed stimulus syncing with cyclical forces leading to a ramping up of production.'"...
But, take away the stimulus spending...and the stimulating low interest rates...and what have you got? You've got is an economy entering a depression.
Oh, there's the rub, isn't it? If the feds hand out money so people can buy automobiles, people buy automobiles. If they don't give out the money, people don't buy automobiles. If they buy automobiles, of course, it looks like the economy is recovering. But take away the giveaways, and the recovery disappears.
Solution: keep giving away money!..
...if giving people money so they could buy things actually made people prosperous, welfare recipients would be the richest people on the planet. Obviously, it doesn't work that way. What makes people rich is the ability to earn money...not their ability to get handouts. And remember, too, the feds don't really have any money to hand out. They can only get money by taking it from its rightful owners – either in taxation or loans. Or, they can print it up themselves. In any case, the money adds nothing real or extra to the economy. It merely distorts the economy...twists it...misleads it...and makes it a bigger mess than it was already.