Ah, the difference a day makes.
Obama's team is denying they will spend $1T, and says it is spend much less.
I have no idea why they would even consider a smaller stimulus. The necessary size of the stimulus spending is at least $1T.
We could spend $1.5T and it might not be enough.
Now we have not gone through the reasoning behind why deficit spending is not typically inflationary. I will in future posts. But, in any case, now is not the time to try to save a few bucks because we are worried about deficits. We are staring at a depression, or more, accurately a panic.
I hope they spend more money, lots more money. $500B won't be enough to get us out of problems. It will help, but we need more.
Thanks to Warren Mosler for this catch on the amount of stimulus planned by the Obama team.
Updated:
Here is a more credible source of the size of the spending planned