Serial hysteria

It's way too late to even wish for this, but "doing nothing" is a lot better than being stupid:

Instead of fighting over what should go in the economic stimulus bill, pitting infrastructure spending against tax cuts and contractors against contraceptives, they say lawmakers should be fighting against the very idea of any economic stimulus at all. Call them the Do-Nothing Crowd.

“The economy was too big. It was all phantom wealth borrowed from abroad,” says Andrew Schiff, an investment consultant at Euro Pacific Capital and a card-carrying member of the stand-tall-against-the-stimulus lobby. “All this stimulus money is geared toward getting consumers spending and borrowing again. But spending and borrowing were the problem in the first place.”

"Spending and borrowing" were the problem in the first place. That could be the motto of the baby boom generation, which is now reacting to its first "self-created, big-time recession" with predictable hysteria:

The reaction to the economic panic was sort of analogous to the call to 'charge it!' after 9/11 (cf. Ike's fights about the surtax to pay for Korea), or to the Iraq 2006 upsurge in violence, when suddenly our leaders declared the war lost, blamed the nebulous "they" for tricking them into voting for the war, and calling for immediate withdrawals and retreats. Ditto the Stalag-Gulag Guantanamo that, by January 19, had ruined the Constitution, shredded the Bill of Rights, and forever tarnished our reputation. Yet, on the 20th, it was suddenly complex and problematic, and required a "task force" to do a year-long inquiry into the bad and worse choices confronting us. At some point in all this serial hysteria, we are beginning to see the problem is not in the stars of the economy or of the war, but in ourselves—a weird generation that, when it finally came of age, proved to be just about what we could expect of it from what we saw in its youth.

And how much of that "stimulus" package wll actually be stimulative? Well, about 12 cents on the dollar, if we want to be generous:

In selling the plan, President Obama has said this bill will make "dramatic investments to revive our flagging economy." Well, you be the judge. Some $30 billion, or less than 5% of the spending in the bill, is for fixing bridges or other highway projects. There's another $40 billion for broadband and electric grid development, airports and clean water projects that are arguably worthwhile priorities.

Add the roughly $20 billion for business tax cuts, and by our estimate only $90 billion out of $825 billion, or about 12 cents of every $1, is for something that can plausibly be considered a growth stimulus. And even many of these projects aren't likely to help the economy immediately. As Peter Orszag, the President's new budget director, told Congress a year ago, "even those [public works] that are 'on the shelf' generally cannot be undertaken quickly enough to provide timely stimulus to the economy."