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11/01/2009

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The idea of a fiscal stimulus as an anti-depression device is to increase employment and by doing so restore business and consumer confidence; we are seeing today how high and rising unemployment is sapping that confidence and retarding recovery from the current depression (and it is a depression, not the "Great Recession" as some are calling it, though that's an issue for another day). Transfer payments are at two removes from putting unemployed people to work.

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