I liked your response about the fact that this stimulus money, unlike Bush’s gets targeted and creates a multiplier effect. The big stimulus package has far too many tax cuts and not enough money for projects out in front. I realize now that they were seriously worried about inflation and probably wanted to be able to cut some of the stimulus if it got that fire going.
I really think that Bernanke et al are seriously not real about the dangers of recession turning to depression. I think there are also a number of deflationary aspects – like the loss of wealth in both stock market and housing – that will have to have a turnaround to add fuel to that fire. The market is moving but it is a weak vessel at the moment. The housing market may be moving but it also may be affected by all the pink slips being handed out. We will see what really happens. What I wonder is how many people have seriously changed their financial habits?

I can see the ads now:”Get those clunker guns off the street…get some sleek, light new high-powered but efficient automatic weapons. Easy handling, even the ladies and kids can put out 500 rounds a minute from the hip. Be “green” -share them with family and friends. And the new efficient American made Smith & Wessons not only create more jobs, but they reduce the costs of health care, too. More people are DOA with our new, deadlier models than with the older models that kept victims lingering for weeks in intensive care or even years in wheelchairs. “Guns For Gravy” it’s Good For America.”

You were really good as usual, especially with many interesting details about why CARS it is good stimulus.

I thought Bob was shooting blanks. He was not serious, made unfunny jokes and argued a fallacy: Is it post hoc ergo propter hoc or Irrelevant Conclusion? I wish I was better at identifying fallacies. Anyway, he argued: If CARS is effective it is unfair because it is not distributing $4500 to every citizen, therefore we should distribute $4500 to every citizen but then that would make us a nation of clunkers, and therefore we should not continue CARS with +$2bil in funding.