Mexico City's Wrong Stimulus

With all consciousness that one should not belabor the point, I am of the view that the economic stimulus that the administration of president Obama is intending may not be fully agreeable in detail, I am still of the view that public expenditure is the right response to the present recession. Whether the approved sum is sufficient or not is an altogether debatable point.

That aside, the mayor of Mexico City has in mind a different kind of stimulus as stated in this IHT piece. As the story suggests, the decision to support older men with free prescriptions of Viagra is a populist measure intended to gain support because of an election that is close by. On this count however, I must state that this is clear misdirection of public funds for the reason that the affliction that makes the use of Viagra necessary is not a matter of public affairs. Indeed, the benefit incidence suggests that it is a minority of men who are taking up this absurd offer. Secondly, the subsidy programme is not only lacking in taste but is very poorly designed. However, given the fact that it is sold as a programme for older citizens, However, it is extremely difficult to attack in public during a political contest