The economy is not weak enough to justify this level of intervention.
A monetary approach would have been preferable.
The key quote:
[G]iven where the economy is right now and the best forecasts of where it is heading, the fiscal package seems unnecessary as a short-run measure, while in the long run adding to the debt burden without doing anything to improve incentives for economic growth.He also points out that the way the payouts are structured, targeted toward lower income families, it stimulates demand while depressing aggregate supply. Hmmm. Boost demand while restricting supply -- can you say "inflation"?
