Finance Geek

During last Monday’s White House press conference, President Obama argued for his stimulus bill, saying, “”If you delay acting … you potentially create a negative spiral that becomes much more difficult for us to get out of. We saw this happen in Japan in the 1990s… and as a consequence, they suffered what was called ‘The Lost Decade’ where, essentially… they did not see any significant economic growth.”

As an argument for the President’s stimulus plan, this example fails profoundly. In fact, the Japanese case argues against Obama’s stimulus.

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