I keep waiting for our vaunted mainstream media to point out that the stimulus package, as currently constructed, not only defies what history has to teach us concerning the efficacy of Keynesian stimulus, it also goes against what many of the President’s own policymakers have said in the past concerning the implementation of Keynesian stimulus packages. Larry Summers’s verdict on the ideal shape of a Keynesian stimulus package is a lot more sympathetic to Keynes than is mine but the Obama Administration’s plan does not even measure up to Summers’s ideal Keynesian stimulus package.
I admit that a Summers v. Summers debate on the efficacy of the Administration’s economic plan would be an entertaining one. I’d pay good money to watch it. But the mere existence of such a debate should set off alarm bells that perhaps, just perhaps, the Obama Administration’s stimulus plan needs some serious reworking.