A Stimulus by another name

Harry Reid did something good today when he said the Senate would be taking up a "Jobs Bill" in the very near future. Let's be clear about this - this is a stimulus bill, so long as they don't try to make it revenue neutral, but it is targeted in a way the original stimulus bill could have been and should have been, but wasn't.

Many of us economistic types complained at the outset that the stimulus was:

1. About half as big as it needed to be; and
2. Spent too much money on tax breaks

It turned out we were right. The original stimulus bill (aided by some more spending in the "normal" budget process) helped pull us back from the brink, but still didnt do enough. It is far, far better to target the money in two ways:

1. To where it will actually get spent right away; and
2. To projects that will increase productivity in the future.

Hiring people to build roads and bridges is a great way to do both of these. While I would also be happy with more state aid and more unemployment extensions as well, I think a jobs bill is the best way to get a second stimulus passed. Relabel it and focus it on something everyone agrees we should have, and which it would be political suicide to vote against.

But for it to be a true stimulus it can't be "revenue neutral." In other words, they can't raise taxes or cut spending elsewhere to pay for it because then you are just redistributing the spending rather than adding to it. My only exception to this would be to repeal those worthless tax breaks given to rich people over the past few years. Those guys aren't going to spend any more or any less if we give or take away some of their money at the margin. So we might as well take it, and spend it on keeping the country afloat by giving people a job.

And just for fun, they could try to tie a state's federal highway monies to a vote in favor of the bill. You want us to add an earmark for your favorite bridge or interchange? Just make a public pledge of support!