The economy, explained, with stories and surprises. Imagine you could call up a friend and say, "Meet me at the bar and tell me what's going on with the economy." Now imagine that's actually a fun evening. That's what we're going for at <em>Planet Money</em>. People seem to like it.
August 10th, 2010
Episode 296 of 911 episodes
Right at this very moment, you and I, and the rest of the country are participating in one of the great economics experiments of all time. An experiment to test whether John Maynard Keynes' prescription for how to get out of a global depression actually works. The Obama administration calls it the American Recovery and Reinvestment Act, you probably know it as the $787 billion stimulus package. Keynes wrote about the idea of stimulus in his 1936 book, The General Theory of Employment, Interest and Money. His theory simply put, was this -- sometimes economies go into a recession and they can't get out, they get stuck in a kind of recession whirlpool and the best way to get them out is a swift kick by the government in the form of spending. The idea being that if the people aren't spending money, the government needs to borrow it from them and then spend it for them. Today on the podcast, we try to answer the question was Keynes right? Did the $787 billion stimulus package worked?