Let’s say that after a long vacation to some place with fantastic food you gain ten pounds. Hey, it happens (just like the housing bubble). You decide you need to go on a diet and lose those ten pounds. So you lose five pounds, but after than, you get stuck. Do you say, the diet failed? You may, be you would not have lost those five pounds without it. What most smart people would say is: I gotta keep at this diet until I lose those remaining pounds.
Likewise with the stimulus bill. Unemployment in the U.S. is still high to around 10% (there is still a way to go, just like those remain 5 pounds). But without the stimulus bill, unemployment would be higher, just like you would be heavier without the diet. And just like the ten pounds won’t likely go away without some focused effort, so to will the U.S. unemployment problem not go away without some extra effort on the part of all parties: business and government, to create more jobs. If business can do it, that’s best. But if not, government (i.e. the people, not the bureaucrats) will need to do it. Or it won’t get done. Just like those pounds won’t go away on their own.
For more on the stimulus and its effects, see here: Economic Scene – Success of Stimulus Bill Is Noteworthy as Another Is Weighed – NYTimes.com
Image and more on this from Swampland blog.