Stimulus is Needed & Will Mean Big Spending

Whether you are an avid supporter of Barack Obama, a perennial political skeptic, a critic, or a staunchly ideological opponent, it is clear that there must be some sort of vast, perhaps unprecedented economic stimulus put into effect in order to slow or reverse a now spiraling economic downturn. And, all have to admit as well, it is a very risky thing to gamble one’s political capital, at such a crucial moment in American history, on a huge spending package that might not have a very visible effect in the immediate short term.

Stimulus means spending, and that’s why it’s a gamble. It can mean spending by issuing cash tax-credit payouts, which consumers can then use as they please (this will likely lead only to the paying of already existing bills, which tends to be less stimulative, especially when banks are not issuing new credit freely). It can mean spending on public works, which will spur industrial output and is likely the most serious motivator of job-creation.

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