Fiscal Stimulus: Good or Bad?

The fiscal stimulus, in my opinion could be a very good way to help boost the economy and help get the nation back on track and out of the recession. Even if it does not bring the economy back to its best state, it at least provides an option to try and aid the problem. The government is trying to put a stop to the fall of aggregate demand. They have decided to do this by starting a program that could stimulate the economy. One of the main ways to do this is to cut taxes. This will give consumers n=more spending power. And by doing this, it will put more money into the market, which in turn would stimulate the economy as a whole. I actually believe that this could have positive and negative effects on the economy. Of course it could put more money into the pockets of consumers, and this in my opinion in a very good thing. But then again, I begin to think about why government has taxes in the first place. The government has to get funding from somewhere. So if they cut taxes, then I am left wondering where they will get the money that need from. Will it just come from some other unsuspecting place? I don't know. This would be my only concern.

The next main way the government can apply this fiscal stimulus is by directing government spending right into the country's infrastructure. This will also increase the nations GDP by increasing government spending. Overall I believe it is an idea that could work if the spending isn't increased drastically and at a constant rate over a certain period of time. I feel this way because I believe that the economy should be given some time to adjust to these major changes so that there are no temporary results. Temporary result would serve no good to the economy because we are trying to get long lasting results so that this does not happen again. So both government spending and consumer spending could raise the nations GDP. In the end, I do not know which one would prove to be more efficient but the plan seems to at least be a step in the right direction. If it does not work, then at least we know what to do better next time and what not to do. This can only lead to our country getting better somehow in the end; it just might take a little longer than we think.