Friday, June 04, 2010

DID CASH FOR CLUNKERS WORK?
The data show that the government stimulus did increase sales — but that the following month, sales dropped in proportion to the spike. The three-week incentive program simply moved sales from the future into the present, and did nothing to increase organic demand even in a relatively short run.
The government did, however, manage to spend several billion dollars we don't have. Keep that in mind on November 2.

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