I was wondering what the Professor would say. The headline — "Obama proposes $50 billion in new infrastructure spending" — has a sweet ring to it. Well, the Professor is decidedly sour on the idea:
1. It’s a good ideaI guess once more size counts, at least for Mr. Krugman. He then goes on to make another point:
2. It’s much too small
3. It won’t pass anyway — which makes you wonder why the administration didn’t propose a bigger plan, so as to at least make the point that the other party is standing in the way of much needed repair to our roads, ports, sewers, and more– not to mention creating jobs. Once again, they’re striking right at the capillaries.
Beyond all that, the new initiative is a chance for me to air one of my pet peeves: the stupidity of the claim, which you hear all the time — and you’ll hear again now — that it’s always better to provide stimulus in the form of tax cuts, because individuals know better than the government what to do with their money.I think many of us know that he's right, but he makes the case well.
Striking at the capillaries. Nice, sir.
GP
