The Stimulus and the Economy
By Arnold Kling
John Taylor cuts through the BS.
the latest Department of Commerce estimates of … the improvement in GDP growth from the first to second quarter. Growth improved by 5.7 percent (from -6.4 percent to -0.7 percent). Private investment was by far the major source. Government spending contributed 1.9 percentage points, but more than half of that was defense spending which was not part of the stimulus. …This one-page brief provides more details and also shows that direct spending from the stimulus contributed only 0.3 percent of 5.7 percent.