As anybody who is a least bit of interested in the economy of the U.S. or the world seems to come to a conclusion that even after throwing everything at the economy to spur it to move and grow, the economy seems to be stuck in glue like situation. I am saying this because the government pushes through some stimulus package and it sticks for a while but when the impact is finished, the economy comes unglued. This is what is happening to the U.S. economy right now. More and more money (or rather I should say “stimulus”) is being put into place and when it is gone, we will be back to square one. You are essentially training people to wait to respond to some stimulus and when it comes, it is a “aha” situation that without the government providing stimulus, the economy would stay the same.
I don’t know if it is the right or the wrong approach. But to put it bluntly, it is the wrong approach since the money being spent is being funded by more debt but the end result is still the high unemployment rate. The people who are feeling the impact of this sluggish economy will tell you that the economy never came out of recession (no matter what the economists say otherwise). You just have to read the newspapers and surf the internet to find out how the economy is affecting people of all classes, that the economy is not creating enough jobs to support the ever increasing population.