“So far, so good,” as the man who jumped from the Empire State Building said as he passed the 50th floor. That’s the assessment of the Hudson Institute’s Irwin Steltzer who offers a cautiously optimistic assessment of the rationale behind the Obama stimulus package. Bruce Bartlett also argues a best-case scenario for fine-tuning a combination of stimulus spending and tax credits to rescue the economy from free-fall. Bartlett admits that other economists question whether the government can spend the money fast enough and wisely enough to help the economy. But he contends that the need is to get banks lending and businesses borrowing now, then next year the Administration should act to control spending and tighten interest rates. Good luck with that.
Here’s a worst case scenario and its consequences for individuals.