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Originally Posted by Yorkist  So what was it intended to do? |
Our entire economy is based in consumer confidence. Nobody talks about it, but the reality is for the economy to turn around the people have to be confident enough to start spending.
The stimulus was designed as much to boost public sentiment as anything else.
We had 2 outcomes that I could have seen happening. The more optimistic first, was that the good feelings many Americans had after the election, coupled with the stimulus and some positive spin would boost consumer confidence. It almost looked like this might have worked, but I think this has flopped.
The second depressing option is that the economy will continue in free fall until the public (like they did at the end of the depression) thinks it can't get any worse and starts working their way out of the hole. If this is where we end up, it could mean a continued fall for at least another 2-3 years and a much slower recovery.
Of course republicans know this. This is why they are claiming the stimulus is a flop. Because saying it is, with a big enough microphone, will virtually guarantee it is a failure.