The economic stimulus package that Pelosi and Boehner agreed on recently has one flaw that I just can’t get past. You’ll find it, for example, tucked at the bottom of the first page of this Washington Post story, for example:
The money would be borrowed and would increase the federal deficit.
Given this, the plan is really adding to the problem that underlies the current situation. The economy is faltering, I’m sure, for a variety of reasons, but one of those reasons is worldwide suspicion about the long-term economic viability of the United States. We are in staggering debt, the savings rate is negative, and we are continuing to hemorrhage money in Iraq.
Given all this, the current plan is like burning your furniture to stay warm: it might help in the short term, but from a broader perspective it will only make things worse.