The central fallacy here is "The stimulus money that flows to taxpayers, government agencies, and businesses has to come from somewhere (the unseen)." The shor

The central fallacy here is "The stimulus money that flows to taxpayers, government agencies, and businesses has to come from somewhere (the unseen)." The short explanation for why this is false is that the velocity of monetary circulation is a variable rather than a constant. A slightly longer explanation is here: http://delong.typepad.com/sdj/2009/01/time-to-bang-my-head-against-the-wall-some-more-pre-elementary-monetary-economics-department.html http://delong.typepad.com/sdj/2009/01/time-to-bang-my-head-a...