Does all stimulus need to be government spending? Apparently not. Bloomerg reports: China February Auto Sales Rise 25% After Tax Cuts
In the article it states that:
“China has halved retail taxes on small cars and drawn up plans to give out vehicle subsidies in rural areas to revive demand”
and that “Consumers are regaining confidence because of the (Chinese) government’s stimulus policies,”
Can the same be said for Obama’s big government stimulus plan?
Washington types talk about “shovel ready” projects, but as we can tell from the stimulus bill when the vast majority of spending occurs more than 18 months out—most government spending is not “shovel ready”
Apparently consumers are shovel ready, and China’s stimulus bill is creating demand, jobs and incomes–
Too bad it is only in China.