Stay on Vacation | Michael D. Tanner | Cato Institute: Commentary

Stay on Vacation | Michael D. Tanner | Cato Institute: Commentary: 'In fact, we have now had at least five — or is it six? — stimulus plans since this recession started.

The first of these came back in February 2008 under the Bush administration: a $152 billion measure, featuring a $600 tax rebate, several incentives for businesses, and loan guarantees for the housing industry. Then, as the recession picked up steam in September 2008, Congress passed the $61 billion Job Creation and Unemployment Relief Act of 2008. This bill pumped money into federal "infrastructure projects" and extended unemployment insurance.

And of course, immediately after taking office, President Obama pushed through the giant $787 billion stimulus. He followed that up with an additional $26 billion bill in August of 2010, aimed at helping states retain teachers and make Medicaid payments. On top of that, in September 2010, Congress created a $30 billion fund to provide small businesses with low-interest loans. Finally, the December compromise that extended the Bush tax cuts included another extension of unemployment benefits and a reduction in the Social Security payroll tax, both heralded at the time as stimulus measures.'

'government at all levels is spending around 40 percent of GDP. If government spending brought about prosperity, we should be experiencing a golden age.'