t wouldn't work Dag. Giving every adult $3.4 K would produce spotty results. Just like the last stimulus provided for some tax incentives. Package that had to serve some political interests to get passed.
Krugman is probably talking about a $3 trillion stimulus or more with an immediate impact on the economy with ongoing support if necessary. LIke a farmer say nothing costs as much as a poor crop. In the world of stimulus nothing costs as much ans an inadequate effort. If you don't impact enough economic activity there won't be enough to bring us out of the economic funk
The people of North dakota don't need a stimulus because there is the shock of oil money that is increasing demand for most everything. And that is what we need is customers for our stores and businesses.
Thus the shock of a strong stimulus could well reward everyone. Austerity need not be removed from the strategy sessions but needs to be on the back burner for a while until the economic engine is running full bore.
I think the strategy of tax cuts as a solution for economic growth has been over sold and this new president romney plans to bet more on it.
The money going to the banks averted a financial lockdown. I have little interest in helping banks but do visualize the ramification bank closures would have had on the average american. I would support selective measures to break up banks and expecially investment banks.
