In spite of GOP claims to the contrary the stimulus plan passed last spring is having a beneficial effect on the economy. Last quarter’s revised GNP figure of 2.8% is the first sign of growth in over a year. Programs such as Cash For Clunkers and the home buyer tax credit worked and gave the economy a shot in the arm. The two year roll out of projects continues and is boosting jobs and preventing losses.
The New York Times did an analysis from numerous economists and all said the bill is working. Interestingly some Republican Congressmen are taking credit when the jobs come to their Districts even though every one of them voted against the bill. Also interesting is the reaction of the lunatic right fringe protesting federal spending. They’ll support next week’s escalation of the war in Afghanistan although it, again, will be financed with borrowed money. They’ll support war even while protesting “death panels.”
Deficit spending, in my and other’s opinions, is essential for two major purposes: rescuing the economy from recession or to finance a major war after the nation is attacked by another major power. This is why I’ve always opposed balanced budget amendments. There are times when such spending is necessary. When the private sector contracts substantially, as now, it is incumbent on the government to step in and fill the economic void. Utter and complete economic collapse is the alternative.
Meanwhile the White House has announced the financing of two new projects in Pennsylvania to build the new smart grid for energy transmission.
The state projects include new battery technology through a grant to East Penn Manufacturing near me in Lyons and a project in Pittsburgh between 44 Tech and CMU for new battery storage technology.