Japan’s Big-Works Stimulus Is Lesson ...

[Ma'ake]

Originally Posted by Archaea

The Stimulus is not stimulus but waste. Not all spending stimulates key sectors. Any analysis that simply says, give to the poor because they must spend is misguided and naive.

My prediction is that Obama blew it with this bill and we will endure a lost Decade of our own thanks to Obama's miscalculations and waste bill. We needed stimulus if you believe in that sort of thing, not waste and mismanagement.

How does spending on the GAO add a multiplier to the economy?

There are well-considered economists who consider the current Senate bill to be inadequate, not up to the task: http://www.sltrib.com/news/ci_11663869?source=rss

The CBO and Mark Zandi agree the Senate compromise is less efficacious: http://www.americanprogress.org/issu...b_numbers.html

I don't think anyone would argue that every item in the bills offers a 1+ multiplier, but considering the amount of tax cuts included, and that even suboptimal spending does *something* to get economic activity going, I think the bill is a decent beginning, certainly not the end of needed spending.