Policy Documents

10 Reasons to Oppose a Stimulus Package for the States

Chris Edwards –
December 19, 2008

The U.S. economy is in recession, and federal policymakers want to help by applying some old-fashioned Keynesian medicine. They are considering a “stimulus” bill of up to $700 billion, with substantial spending going to state and local governments for infrastructure, Medicaid, and other activities. Such subsidies for the states would be ill-advised for at least 10 reasons.