Reply #111: Two obstacles.

[hay rick]

I think I covered your point in my next sentence:"As regards the consequences, this is not very different from what has already happened. The difference is that Obama has lost significant progressive support for not really trying."

We agree that the stimulus plan was too timid to work and the primary reason for a crippled bill was the need for Republican and DINO support, particularly in the Senate. I think the second important reason was Obama's wishful thinking. Because economics is an inexact science, he believed that there was a chance that a small stimulus bill, abetted by the magical self-healing self-correcting mechanisms of the marketplace might be sufficient. Recall the projections of unemployment peaking around 8% with the stimulus plan in place.

In this way of thinking, the stimulus plan might work, and if it didn't it was still better than nothing and you could at least say you tried. Of course in America ca. 2010, you are more likely to hear talking heads cozying up to the idea that the "size problem" with the stimulus is that it was too big.

I wonder what's at the bottom of this hill. Looks like a long way down.