Fundamental Error in the So-Called "Stimulus" Approach

By | February 9, 2009

Congressmen, Senators, the President, and all the high advisors feel that “we need to do something!” about the current economic crisis. Leave aside that government action is at least 50% the reason we got into this mess (I’d rate it closer to 80%). These guys are succumbing to a major critical-thinking error:

1. We must do something!

2. This (the so-called “stimulus” package) is something.

3. Therefore, we must do this.

Merely that it’s something to do doesn’t mean it’s a good idea.

I’d rather seem them subscribe to this: “Don’t just do something — stand there!” Government doing *nothing* is almost always much better than government doing *anything*.