Bush and Obama on the Economy

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Most economists agree that any stimulus spending has to be big enough to make an impact if the intent is to spur economic activity via fiscal policy. Previous attempts at fiscal stimulus have shown meager results in trying to right the sinking ship of the U.S. economy.

The argument for fiscal spending is clear. With consumer spending falling off a cliff as unemployment rises and uncertainty reigns supreme, the government is the only entity strong enough to backstop a teetering financial system.

Back in the spring of 2008, then-President Bush enacted a stimulus package through tax rebates. Most Americans chose to either repay debt, save, or spend their rebate checks on record high energy prices. The end effect had little impact on a clearly declining economy.

With President Obama muscling through his latest federal spending package, many Americans have been left wondering if the results will be the same. The $787 billion stimulus package (On top of trillions injected by the Fed) is just the latest attempt to stabilize the financial system.