What is the correct size for the economic stimulus package being debated in Congress?

By PBN Staff
Posted 2/11/09

Having passed the Senate yesterday, the economic stimulus bill is now in the midst of what could turn out to be contentious House-Senate conference committee negotiations.

While it is not clear if principled opposition to the approach of the stimulus or political gamesmanship (or both) is the reason for the nature of the public debate on the bill, there seems to be no question that there will be a stimulus package approved by Congress and signed by President Barack Obama.

Whether it will contain larger tax cuts or more government spending is likely to be the crux of the Congressional debates.

In the end, however, the biggest question is likely to revolve around just how much money the government will pump into the economy as the "buyer of last resort."

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