American Enterprise Institute economist Lawrence Lindsey has provided a compelling critique of the (non)effects of the Stimulus package in an article for the Weekly Standard. His analysis shows that no perceptible change in economic trends occurred as a result of the stimulus spending crafted by the Obama Administration and Congress and passed in February 2009.
Lindsey’s analysis validates my observations about the weaknesses of these models, particularly the study by Alan Blinder and Mark Zandi that claims that the stimulus package significantly reduced unemployment.
Reading the two articles together provides a pretty compelling argument for the ineffectiveness of the stimulus package.