ON-Lion Letter
The 2009 massive federal stimulus package "was not effective in stimulating the economy," Bradley Prize recipient John Taylor told Congress in February.  "Despite its large size, he continues, the package "did not result in more than an immaterial increase in government infrastructure and other purchases at the federal level."

During testimony before a subcommittee of the U.S. House of Representatives' Committee on Government Oversight and Reform, Taylor also said that the package's "large grants to the states did not result in an increase in government infrastructure and other purchases at the state and local level.  And finally an analysis of the payments that temporarily increased disposable income shows that they did not significantly affect personal consumption expenditures."

Taylor is the George P. Shultz Senior Fellow in Economics at the Hoover Institution and the Mary and Robert Raymond Professor of Economics at Stanford University.  He chairs Hoover's Working Group on Economic Policy, which is substantially supported by The Lynde and Harry Bradley Foundation in Milwaukee.

In contrast to the stimulus, Taylor concludes, "changes in private investment and net exports have been much more of a factor in the recovery. Currently, the increased debt caused by [the stimulus package] -- both directly through its deficit financing and indirectly through its de-emphasis on controlling spending -- is likely a drag on economic growth."
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