How about all that government spending.  Is it doing the job?  We have a study now published in the National Journal of Economic Research from University of California at San Diego economist Valerie Ramey.  In previous papers Ramey had opined that there was a slight stimulus effect from government spending.  But she decided to delve into the effects of spending a bit more.  Here’s what she found based government statistics from World War II forward:

“An increase in government spending never leads to a significant rise in private spending.  In fact, in most cases it leads to a significant fall.” 

Now we know. Now we have a comprehensive study which shows that government spending --- or “investing” as Democrats like to cal it --- leads to pretty much nothing more than more government spending.  And what about jobs?  Ramey also finds that government spending increases government employment .. but not private employment.

Now you know why the Obama/Pelosi $800 billion stimulus plan pretty much did nothing more than borrow and then spend $800 billion.

Let’s spend some more!  What fun!