Obama, Congress made the stimulus ineffective as stimulus
Dan Clifton of Strategas Research makes some great points on the choices the Obamacrats made when constructing the stimulus plan:
We believe it’s not a question of the simulus being too small. The real issue is that it was designed very inefficiently, focused on longer term projects with long lags in distribution, and not focused on remedying US economic problems.
At the end of the legislative process, three major provisions were scaled back to ensure the stimulus had very little impact in the near term: 1) Income tax cuts were reduced in size and scope, 2) The housing tax credit conditions made the provision meaningless and 3) The Net Operating Loss impacted very few companies. If these provisions survived in their original form, it would not matter much that the spending won’t really start having an impact by 2010.
But now that spending is the focus of the package, by its very nature it will take time to be spent and then actually impact jobs. Which begs the question, if another stimulus is put forth, is it just additional spending on top of what is approved?
My spin: When people say, “It’s Obama’s economy now,” this is what they mean.