OK so we've got over 400 billion of stimulus that (if i understand the economics) will boost aggregate demand and improve growth and lead to more jobs, leading to more demand and a virtuous cycle will ensue.
however...
the spending is also to be offset by other cuts to make it deficit neutral. Won't those (yet to be specified) spending cuts reduce aggregate demand slowing growth and in effect negating the effect of the stimulus spending.
Taking X billion dollars that you were spending on Y and now spending them on Z doesn't increase demand at all, does it?
I guess that the new spending could be more stimulative than the old if spent wisely. But how much more stimulative could it be? And how wise is our government anyway? And couldn't the more efficient use of the dollars be offset by the transition costs of ending a bunch of things to start another buch of things?
Am i really missing something here?