During a conversation with a teacher of mine about the Obama economic stimulus plan, he repeated two defenses of the plan I’ve grown a bit tired of. The first defense is that something had to be done. If the government would not have done anything, the situation would become even worse, and Americans would panic. The second defense is based on the first: Americans had to get the feeling their government was dealing with the problem – the plan gives them the impression Washington is helping, which will give them hope for the future (and perhaps influence their behavior positively).

Both defenses are weak, if not ludicrous.

Lets deal with the something had to be done defense first: something doesn’t or shouldn’t mean anything. The economy may be in serious trouble. This may mean the government should help out; the economy may need stimulating. But the something should then consist out of measures that actually help. The Obama plan is so horrible, however, that it does little to nothing to stimulate the economy in the short run and has a negative impact in the middle to long term. That’s not doing something, that’s doing worse than nothing.

Aside from the above, something has to be affortable. This plan is not, however. It will cost the American tax payer more than $828 billion, while it will not improve the economy in any significant way whatsoever. That is a rather ludicrous amount to throw away only to bring us to defense number two, the American people have to believe their government is helping them.

This defense always seems to conveniently ignore the fact that a majority of the American people oppose the plan. They believe it’s too costly and ineffective. They do not want to get the impression their government helps them, they want to know it does. This plan, however, isn’t more than a very expensive myth.

Additionally, telling Americans that having the government throw money at them is in their interest is a horrible message to send. It will make Americans more dependent on the government, and it will cause them to support useless plans, just because the government tells them it’s good for them. Americans will, more than they already are, be turned into fiscal irresponsible individuals. Americans don’t need the government to fix things for them, they need to do so themselves. Changing their spending and borrowing patern will do more strengthen the economy than massive spending plans.