More on Stimulus Lag
Total: $356.0 billion
Notice that about $105 billion occurs in or after 2012. How about we just remove that portion of the spending as it strikes me as being well outside even the most pessimistic projections for the economy. And if things do turn out to be that bad (i.e. the economy is still in the dumps even after 2011 then a new stimulus plan could be put in place that takes effect in 2012).
I’m thinking much of this spending will kick in well after the recession is over.
The transfer payments and tax relief portions of the bill take place much faster.
Organized public works, at home and abroad, may be the right cure for a chronic tendency to a deficiency of effective demand. But they are not capable of sufficiently rapid organisation (and above all cannot be reversed or undone at a later date), to be the most serviceable instrument for the prevention of the trade cycle.–Keynes, Collected Writings, vol. XXVII, p.122
Seems to fit with the above. Not that I suspect this will do much good.