Wrote about the Economic Stimulus package yesterday in $150 Billion Economic Stimulus package seems lame and meant to fail and I've been writing about Sub-Prime Mortgages quite a bit for the last 6 or 7 months - that anything that's done by the government is probably going to fail to produce much of an effect; Paul Krugman posted about this today in Who gets stimulated ? with a chart that looks like it could belong in an analytics report:
"……Here’s what it looks like, by quintiles of the income distribution:
"..I’d guess that the top two quintiles are unlikely to be liquidity-constrained, so the rebate will have little effect on their spending. But they get 58% of the money. The bottom two quintiles, which are the place you’d most expect to have an impact, get only 21% of the money. Split the difference on the middle quintile, and you’ve got a plan where around 2/3 of the outlay is likely to be ineffective."
Well, judge for yourself.
