The Reality Of The
Obama Stimulus Spending Plan

This page is intended as a resource to
spread the word and the facts about the
so called Obama "stimulus" plan.

President Obama and other politicians are urging a massive expansion in government spending, ostensibly to help the economy recover. This Keynesian endeavor is supposed to boost growth by "priming the pump" by means of circulating extra money through the economy. Yet the notion that bigger government leads to more growth is theoretically unproven: any money that the government "injects" into the economy with new spending (or tax rebates) must first be borrowed and diverted from private use. The economic pie gets sliced differently, but it is not any bigger.

The real-world evidence is similarly unfavorable to Keynesianism. Huge increases in government spending under both Hoover and Roosevelt did not help the economy during the 1930s, and more recent Keynesian initiatives; Gerald Ford's rebates in the mid-1970s, Japan's stimulus efforts in the 1990s, and President Bush's rebates in 2001 and 2008.

Below are downloadable files with supporting information and sources with greater detail and analysis to expand on the content in the video and to share with colleagues and family.

Keynes Was Wrong: Bigger Government Does Not Boost Growth

Do Government Spending and Tax Rebates Stimulate Growth?