A fiscal stimulus package is the gift that keeps on giving! It provides 1) a temporary bump in GDP 2) an equivalent drop in GDP when it's over and 3) a further drop in GDP later as it's paid for by higher taxes or by increasing the debt. That's why the Congressional Budget Office warned that the Obama stimulus would hurt the economy in the long run. It is essentially a parachute adding drag to an already labored system. The greater the stimulus, the greater the effects - both positive and negative - with the negative effects outweighing the positive. The effect is magnified when stimulus money goes outside of the American economy to other countries as much of the Obama stimulus did; we get a smaller bump but still pay the full boat.
Are we so willing to close our eyes to the fate of other big spending countries, or is it selfishness and the growing "what's in it for me" culture? I think about the future impacts of today's runaway spending and wonder of we're going to follow in Greece's footsteps with unemployment over 25% and people rioting in the streets as the government imposes unavoidable austerity measures? Unless we get spending under control to the point where we can actually cut the debt, we are well along that road.
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