The Japanese tried huge public works spending, and it failed to rescue their stagnant economy. That is because the money goes to wasteful, over-priced, and inefficient projects. These projects are pork barrel and subject to politics. They harm the economy by diverting resources into unproductive jobs. They harm the economy by undermining the good ethics that are the basis of any sound economy. The U.S. lobby groups for housing and construction are large and well-known, and they correspond to the Japanese cartels. In both cases, there exists an iron triangle among business, bureaucrats, and politicans that leads to waste and corruption. Tax cuts only lead to increased borrowing and dollar devaluation unless they are matched by cuts in wasteful government programs. The real political work to be done is in taking aim against interest groups and cutting spending for the sake of the general public. The Obama stimulus package does the very opposite.