Justin Wolfers at Freakonomics:
All told, it’s a very real plan and very specific. None of this is magic: Government gets more active when the market fails, and we pay it back when the market booms. This is all standard economics. There’s no gold-buggery, voodoo austerity or laughable Laffer-y. Obama’s not making up economics, he’s using simple tools to solve the obvious problems. And with long-term real interest rates close to zero, there’s no risk of this crowding out private investment.
As for the politics: Ask a political scientist. But I wouldn’t want to have to explain a vote against this to my constituents, who are mad as hell about unemployment.
