It is a more-or-less widely known fact that most of the stimulus money in the US went to banks and bankers. Even the money pumped into the ‘heavy’ industries got somehow “diverted” into the pockets of execs and higher management. And where is the US now? They did not get out of the trouble, that’s for sure. The mancession did not end. ‘Experts’ say that the depression will probably get worse before any light can be seen at the end of the tunnel. No wonder, I say, because it was the banksters who created this depression in the first place, and they simply pocketed the money thrown at them.
Let’s look at what the fearsome communists did in China with their stimulus package:
“Public infrastructure development took up the biggest portion — 1.5-trillion yuan, or nearly 38% of the total package. The projects lined up include railway, road, irrigation, and airport construction.
The second largest allocation – one trillion yuan – went to reconstruction works in regions hit by the 8-magnitude Sichuan earthquake last May; that was followed by funding for social welfare plans, including the construction of low-cost housing, rehabilitation of slums, and other social safety net projects.
Rural development and technology advancement programs shared the same amount of allocation – at 370 billion yuan each. Rural projects in the pipeline included building public amenities, resettling nomads, supporting agriculture works, and providing safe drinking water.
Technology advancement mainly targeted at upgrading the Chinese industrial sector, gearing towards high-end production to move away from the current export-oriented and labor-intensive mode of growth. This was in line with the government’s latest Blueprint for revitalizing 10 selected industries.”
(Source: wikipedia, emphasis mine)
So, instead of giving the money to bankers, they have decided to build things. They didn’t hand out “free money” to phoney whiners; they’ve started useful projects giving jobs to hundreds of thousands of men. And the results?
“these programs seem to have been even more successful than expected, so that on November 4, 2009, the World Bank group enhanced its “prognosis” of the Chinese GDP, by +1,2 %, to a value of +8.4 %. (…)
Chinese economic growth was around 10 percent even as its European and north American economies were slowing.”
And the ironic twist at the end of this edifying short story?
“Due to the success of the economic stimulus plan, the central government has tightened regulation in the financial system on banks (…)”