Last week's Eye Poll took up the issue of the over $800 BILLION spending... "stimulus" package. Eye readers are just as skeptical of the concept of spending borrowed money in an effort to stimulate an economy plagued with bad debt. 53% of readers do not support the "stimulus" package, 10% supported some of it, 1% had no opinion, 14% supported most of it, and 22% supported the package (view it here).
There's a fundamental problem with the Obama-Pelosi-Reed "stimulus" package in that unlike the private sector, governments do not create wealth because every government job necessarily takes resources away from private companies and individuals. FDR's New Deal is a prime example of the failure of government spending as a vehicle for economic recovery.
Most historians credit World War II with raising the United States and the world out of the depth of the Great Depression. Keynesians point to the massive government spending inherent to that conflict as validation of their belief in government spending as a vehicle for economic stimulus.
It's true that all of the parties involved in World War II spent massive amounts of money on the war. However, the war was also a time of rationing and privation where non-war related production was at an absolute minimum. The warring nations of WWII did not create wealth they quite literally destroyed it.
At the end of that brutal conflict, most of the industrialized world was left in shambles - their infrastructure in destroyed, their economies non-existent. The lone exception was the United States. A war weary world turned to the one country left standing to provided needed goods that they were no longer able to produce themselves.
It wasn't the war that brought the world out of the Great Depression - rather it was the end of the war and a return to wealth creation by individuals and private companies that brought about economic prosperity.
Obama's Neo-New Deal will have the same effect as FDR's - temporary jobs, massive debt, and a legacy of unsustainable government programs. The blind adherence to Keynsian principles will most likely deepen the current recession perhaps even pushing the world into depression.