The proposed “Stimulus” Package is on line now.
As Glenn Reynolds says, it’s basically a massive transfer of wealth to the politically connected from the politically unconnected.
[Update a few minutes later]
Robert Samuelson has some gloomy thoughts:
in practice, the stimulus could disappoint. Parts of the House package look like a giant political slush fund, with money sprinkled to dozens of programs. There’s $50 million for the National Endowment for the Arts, $200 million for the Teacher Incentive Fund and $15.6 billion for increased Pell Grants to college students. Some of these proposals, whatever their other merits, won’t produce many new jobs.
Another problem: Construction spending — for schools, clinics, roads — may start so slowly that there will be little immediate economic boost. The Congressional Budget Office examined $356 billion in spending proposals and concluded that only 7 percent would be spent in 2009 and 31 percent in 2010.
Assume, however, that the stimulus is a smashing success. It cushions the recession. Unemployment (now: 7.2 percent) stops rising at, say, 8 percent instead of 10 percent. Still, a temporary stimulus can’t fuel a permanent recovery. That requires a strong financial system to supply an expanding economy’s credit needs. How we get that isn’t clear.
I hope it doesn’t take another war to get us out of this.