Matt Yglesias

10 Responses to “Ideas for Stimulus”

1. Don the libertarian Democrat Says:
   October 26th, 2008 at 11:44 am

   “This example brings us to the final crucial area that the last stimulus package did not address, which is infrastructure investment. I urge this body to strongly consider including funding for infrastructure projects in a second package.’

   I believe that this should be the major thrust of the new stimulus package. Declining oil prices can be seen as giving the consumer a bit of a stimulus.

   I do not disagree with his proposals about unemployment, etc., except that I don’t consider them purely part of the stimulus, but a social cost we must pay to help people through the downturn.

   The aid to states here:

   “This time the states’ budget needs are considerably larger, and various analysts of such conditions have suggested that $50 billion, split between Medicaid and block grants, could be usefully absorbed by states to offset the effects noted above.”

   Might make sense on its own, but as a stimulus it should happen quickly, precisely because the infrastructure part of the plan, while essential, might take some time to implement. Some part of the stimulus needs to get going very soon to actually qualify as a stimulus.

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