I’m going to belabor the obvious here. I hate to do it, but somebody needs to and nobody else is:
*Calling something a stimulus package doesn’t make it one. This one doesn’t come close.
*If you are headed in the wrong direction, speed is not your friend. Neither is size.
*The rescue of financial institutions is more urgent than a stimulus package and less expensive to taxpayers.
*Illiquid assets can be purchased, held, and later resold, possibly at a profit, while money spent is money gone. One is “investment;” the other is spending.
*Money spent with borrowed money raises future interest costs to future taxpayers.
*Rescue investing by the Fed and Treasury probably provide more stimulus than stimulus spending helps the financial system.
*You don’t have to have a stimulus package to get stimulus. The recession is triggering automatic stabilizers – more spending and lower tax payments. The budget deficit is growing rapidly without a stimulus bill.
*Since the beginning of September, Fed operations have speeded up the growth of bank reserves and money. As velocity normalizes, much stimulus will be unleashed. The trick will be winding it down.
*Tax-rate cuts would result in immediate reductions in withholding and impact the economy faster while letting the public allocate their own funds.
*”Buy American” provisions are crazy. Has anyone heard of Smoot-Hawley? Do we not understand retaliation?
*Did someone say Davis-Bacon would apply to construction contracts? The best I can say about it is that it’s well named.
*This is no time to poke a stick in our biggest international creditor’s eye.
*What some people are calling “manipulation” used to be the official policy of the U.S. and other countries under Bretton Woods.
*I see that while we were focused on these issues, the trial lawyers just got a whole new playing field – equal pay.