The Stimulus Bill Debacle
Tuesday, February 10th, 2009It has become clear to me…that nothing is clear when it comes to the stimulus bill. There are so many vectors to consider that I do not know how anyone – politician, economist, or average American – can make any sense of it. The first point of confusion comes as we listen to this debate about whether or not government spending is the answer to a recession. Senator Claire McCaskill (D-Missouri) was quoted as saying:
“Every economist agrees that the government spending in a recession is essential”
Obviously not, Senator – as a recent economists’ conference in Nevada indicated. And certainly the Republicans do not agree, as they have been criticizing the bill as the height of pork-barrel spending. But this brings me to the second point of confusion – how to separate a genuine ideological clash from political maneuvering. In a previous post, I mentioned some of the qualms that Republican congress members had with the original House bill, many of which I thought were legitimate. However, as I also noted in that post, the sum of their complaints amounted to a very small percentage of the projected total spending. So it seemed to me, upon further consideration, that their complaints were more likely a political tactic to undermine the Democrats political advantage. The Republicans set the tone for the debate, and left the Democrats – including President Obama – scrambling to defend their positions. (more…)