“With the private sector so weakened by this recession, the federal government is the only entity left with the resources to jolt our economy back to life.” That statement came from Barack Obama in defense of his 2009 stimulus plan. Yet with the continued sluggish economy and the unemployment rate remaining above 9% (over 2% higher than the administration's projection), it’s clear that ARRA failed to stimulate much of anything.

In their latest video, our friends at Reason TV, along with Mercatus Center Senior Fellow Veronique DeRugy, explain why the stimulus plan failed, and why federal spending is an ineffective tool for boosting a slumping economy.