Kudos to Tim for providing some context on USDA’s “pork purchases.” I’ve never understood why Matt Drudge’s Web site has such influence over the Washington news cycle; he posts a few sensational links with absolutely no context, and suddenly they become the “big story” of the day. Why?
Anyway, some reporters and politicians have questioned whether spending $20 million on pork helps the economy. So just to repeat a point we made in February: All spending is stimulative. The government could buy $787 billion worth of ham, or pay laborers $787 billion to dig holes and fill them back up again, and it would stimulate the economy — because that $787 billion is still being spent.
It wouldn’t be the best use of the money, of course, but it would be stimulative spending nonetheless.