I'm not even sure I believe such bailouts work, either in the short term or the longer term.
Perhaps the extra money in the economy will only fuel inflation, and the longer term cost of either paying back the money (assuming it was a loan, as it is in most cases) or through reduced government spending might negate the positive effects (if any) of the bailout in the short term.
However economic measures of this magnitude have never been tried before, so all we can do is wait and see.
To me it's more of question of politicians' logic:
Something must be done.
This (ie a bailout) is something.
Therefore it must be done.
I'm not even sure I believe such bailouts work, either in the short term or the longer term.
Perhaps the extra money in the economy will only fuel inflation, and the longer term cost of either paying back the money (assuming it was a loan, as it is in most cases) or through reduced government spending might negate the positive effects (if any) of the bailout in the short term.
However economic measures of this magnitude have never been tried before, so all we can do is wait and see.
To me it's more of question of politicians' logic:
Something must be done.
This (ie a bailout) is something.
Therefore it must be done.