Friday, July 31, 2009

Real Stimulus

The WSJ article on the building of a new military vehicle illustrates that defense spending is "stimulus" spending too, according to those who believe government spending "stimulates" the economy.

As I discussed earlier (see here), one of the few categories of spending that didn't increase in Obama's "stimulus" plan was defense spending - despite the wear and tear our military equipment has incurred in the wars in Iraq and Afghanistan, and despite the fact that the military has long-range plans to acquire weapons that could be accelerated in an economic downturn to provide jobs today without increasing government spending over a longer-term budget cycle.

And the fact that such spending didn't increase, gives the lie as to what the Democrats' plan was all about - spending money on Democratic constituents and priorities.

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