Finally, we are getting somewhere! The great debate about the size of the stimulus has begun!
I posted back on December 5th the size of the stimulus must at least $1.0T, and should probably be much larger. Boy, did I catch hell in the comments for attempting to quantify how much money needs to be spent because I did not know what I was doing. Lucky for me, Paul Krugman used the exact same methodology a several weeks later to estimate the size of the stimulus. Stop copping my riffs, Krugman!
I then posted that Obama's stimulus plan is probably too small to save the economy.
We finally have a debate starting and the initial consensus is: Obama's stimulus plan is too small! Take a look at the luminaries who are talking about the plan being too small.
The Obama team has released a paper which directly addresses how much the stimulus will impact the economy. Conclusion: not much.
Paul Krugman comments on the paper and says: We need way more stimulus and it needs to happen ASAP .
Prof. K also says: We will have a liquidity trap unless the plan gets much larger.
Steve Brennen of the Washington monthly does a quick overview that reviews everyone else and the consensus is: we need more stimulus
John Galbraith says we need more stimulus.
Digby talks about thepolitical dance playing out, and how Obama is setting the stage with some help from John Kerry
Update: Josh Marshall gets in on the action.
Update 2: It is not only the size of the stimulus, it is the timing. Prof. Krugman talks about the threat of a deflationary liquidity trap if the timing is wrong. And how could I have missed John Kerry and Harkin saying the plan is too small?
Update 3: I missed Stiglitz too. Doh! thanks bigchin!