The 2009 Stimulus Package: Two Years Later

From Professor John B. Taylor... I would highly recommend visiting Prof. Taylor's blog here.

The 2009 Stimulus Package: Two Years Later

Testimony Before the Committee on Oversight and Government Reform Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending U.S. House of Representatives February 16, 2011

Conclusion

In sum, the data presented here indicate that the American Recovery and Reinvestment Act was not effective in stimulating the economy. Despite its large size, ARRA did not result in more than an immaterial increase in government infrastructure and other purchases at the federal level. The large grants to the states did not result in an increase in government infrastructure and other purchases at the state and local level. And finally an analysis of the payments that temporarily increased disposable income shows that they did not significantly affect personal consumption expenditures. In contrast changes in private investment and net exports have been much more of a factor in the recovery. Currently, the increased debt caused by ARRA—both directly through its deficit financing and indirectly through its de-emphasis on controlling spending—is likely a drag on economic growth.

http://media.hoover.org/sites/default/files/documents/2009-Stimulus-two-years-later.pdf