Congress is in gridlock. We are told by financial analysts that America needs a stimulus package from Washington, but Congress cannot agree on what this package should look like. Congress is divided over who should be the beneficiaries. Each political party has its preferred groups of voters to pay off. Each Congressman’s official goal is to “get the economy moving again.” The unofficial goal — the one that really matters — is to “pay off the voters who supported me in the last election, and who probably will support me in the next election.” What kind of stimulus package should … Continue reading Consumer Spending and the Recession