Vice President Joe Biden asserted in an interview Wednesday that taxpayers have "gotten their money's worth" out of the $787 billion stimulus program that Congress passed during the depths of the recession.
Another classic case of Damned if you do, damned if you don't. Whether or not taxpayers have gotten money's worth is certainly debatable.
What is clear is that most taxpayer supported stimulus has followed the law of diminishing returns since 1953. In other words, they are not getting as much income (bang) for the debt based stimulus (buck) as in the past. This trend towards shrinking income rewards from debt based stimulus must end before the next long-term recovery can occur. If this point is not realized, there will a time when no amount of debt creation (stimulus) will create growth. The recent and continued exodus of the political base might be a indirect acknowledgement of this possibility.
Annual Income Growth per Debt Creation:
Source: finance.yahoo.com
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