Why More Govt. Stimulus Is a Bad Idea

With the U.S. already “teetering on $62 trillion of debt,” this is a very dangerous game, says Charles Ortel, managing director of Newport Value Partners, an independent research firm.He also worries the Obama administration is waging a “war on capitalism,” but doesn’t give President Bush high marks on that front either.As to the Keynesian argument the government needs to grow during periods of severe economic distress, Ortel says history suggests otherwise. “It’s not clear stimulus worked” to get America out of the Great Depression in the 1930s, he says, and it’s “abundantly clear Japan’s stimulus didn’t work” to stem its now 20-year economic malaise.

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