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View Diary: Krugman Spins It A Bit In: “The Stimulus Tragedy” (134 comments)

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  •  I think that a political miscalculation with (3+ / 0-)
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    puakev, bobswern, Subterranean

    the stimulus was as much where the money went as it was the size of the stimulus.  

    I tend to think that much, much, more of that stimulus money should have gone to public spending on infrastructure -- the "shovel ready projects" that the President touted.  That's money that people can actually see and experience.  Instead, while you can categorize where that money went in nice platitudes (like stimulus for "green energy") where the money  actually went was in areas that the average middle class person did not see or feel.  It fueled the argument that it was just spending for the sake of spending.  Of course, a pure Keynesian would agree that even spending for the sake of spending helped the economy.  But to the average person, there's a huge difference, when you talk about spending the money they go to work every day to earn, on just "spending" versus spending it on roads, bridges, even expanding internet access -- things where they can actually see where "their" money is being spent.  

    I think it may have been better to push a "visible" public works program -- like Eisenhower's program for the interstate highway system. Even some sort of updated "internet access" system (putting in the infrastructure to provide universal access), calling it the interstate highway system of the future, may have been a better use of some of that money.  

    It seems to me that it was the political decisions on where the stimulus money went that is causing the current political issue.

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