Believe me when I tell you it is not the theory that is wrong nor the execution of the plan that is flawed, it is the manner at which the recipient handles the stimulus. Meaning what people use the money they get from the stimulus determines its effect of the economy. The idea of the stimulus plan works when people and business use the money to better their life. Investing in tvs, cars, and flashy new marketing techniques are deliberate and practical ways that stimulus money is intended to work.
However the news and environment of the country has scared the american people into a state of recessional shock. This puts people into a state of confusion and panic. By inserting the feeling of fear into the people and small new business, they are not able to handle money in the correct money. I am not saying that they do not know how to handle money, but the environment of news has altered our perspective on how to applicably spend money. When we are in this scared state of confusion with the economy and we receive money we don't know what to do with it, so we save it. This is the exact opposite of its intention. The money is supposed to be used to spend not to save. When we save the recession only gets worse, because there is less money for people to exchange back in forth. The money idea in a recession is spend now, save later, but our country has done the exact opposite.
So blame Obama, the government, the stock market, GM, BP, or Ben Stein if you want, but I truly believe that the United States citizens and business not spending money is truly the root cause. Congratulations America, the government through us several life ropes, but we just tied them to our feet and kept trying to swim to the bottom of the ocean.
