Stimulus Forever

[GGT]

Our Infrastructure is "Patch and Pray". Could use stimulus.

http://www.msnbc.msn.com/id/21134540...05842#39105842

http://www.msnbc.msn.com/id/39100434/ns/us_news/

[wiggin]

Going beyond the economic textbooks, I think it's pretty easy to see that the way this administration approaches regulatory, tax and other policies is hurting aggregate demand. Sending billions sloshing towards government construction projects and research doesn't really restore anyone's sense that it's business time. If we're to look at this in terms of AD, that is.

I'll agree with the parts I bolded, at least in the case of many policies (though by no means all) - many policy choices of this government have not been the best for the economy (though whether they decrease AD is a little questionable IMO). That doesn't mean that pouring money into various projects can't increase AD at least in the short term; stimulus just needs to be put in the appropriate policy context to actually work well.

Furthermore, most businesses most definitely appreciate good infrastructure and high research investment (yes, even public research investment) for a conducive growth environment. In principle, these priorities aren't all bad, especially when no one else is spending any money. The issue is really other policy, which has been a mixed bag. But stuff like this gives me some hope that businesses are also getting a direct boost right now:

http://www.nytimes.com/2010/09/07/us...1&ref=business

To address your other point: I know AD is a bit nebulous, but it's a nice catch-all term to deal with the simple fact that no one is buying anything, from companies to individuals, even things they really probably need.