Overall, government spending doesn’t boost national income or standard of living. It merely redistributes it—minus the share it spends on the bureaucracy that collects and spends our tax dollars.The vast bulk of the "stimulus" spending that Washington has cranked up won't do anything to stimulate the economy, as I and many other economists have argued all year long. That's because almost all of the stimulus spending is essentially a transfer of money from one person to another, while a small fraction is going to be used to actually build new infrastructure (and most of that won't happen for a long time). The only kind of stimulus that makes a difference is the kind that focuses on changing people's behavior. Tax income less and you will get more work; tax capital less and you will get more investment; tax saving less and you will get more saving.
Will someone please explain this to Mrs. Nancy ("Clueless") Pelosi as she flirts with the idea of yet another stimulus package?