When we understand the multiplier effect of distributing resources in directions that create jobs, boost consumption and have positive effects on economic activity, we start to benchmark ourselves on real metrics that are exact and measurable. 

By micro-targeting money with pinpoint accuracy, we can control the stimulus like never before. Small business, underprivileged, specific sectors (eg. farming) - with any programmable parameters to guide. Time, sector, location, employee numbers, industry etc. and say with designated spending criteria – consumption or job creation. 

We can “pump prime” the economy at the transaction level, creating demand shifts in micro targeted directions- and measure what really matters.  

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Keynsian Theory

Stimulus bills are based largely on 1940’s Keynesian economic theory around sagging demand leading to insufficient spending and idle resources. Keynes’ theory was developed in very different climates, times and technology. 

 

Measuring his “multiplier” effect of fiscal stimulus packages is messy, controversial and largely unknown. Until now. 

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Valued Constituents

Often when the economic downturn ends - as virtually all do eventually - any enacted stimulus will get the credit. Who doesn’t like free money ? 

Fiscal Stimulus is political mana from heaven – the theory of distributing money to needy individuals and businesses in a time of ‘crisis’ is largely non-falsifiable. Macro M1-M3 stimulus packages (stimulating the economy in various flavors of monetary supply) is arguably met with various degrees of latency in effectiveness.