An editorial “Confusion over stimulus’ impact” reports “Critics also seize on a recent Associated Press analysis that shows the $20 billion in stimulus money that went for roads and bridges had no effect on local unemployment rates.”
WATCHDOG: Growl! The implication is that the stimulus money went for naught. But all the AP study indicates is that the rate of unemployment did not increase in the areas as it has throughout the nation, evidence that the spending was helpful. Does anyone doubt that putting people to work reduces unemployment? In turn, instead of receiving funds from the government, they now have money to spend on goods and services from others. This is called the ‘multiplier effect.”
