The Case for Another Stimulus

The unemployment rate is higher than the Administration forecast.  From a Keynesian perspective, this suggests that the need for a stimulus is even greater than when President Obama took office.

I would score one point for those of us who argued for a stimulus that takes effect in 2009 rather than in 2010 and beyond.  We could still do that, by enacting a payroll tax cut, effective immediately.

However, if a "second stimulus" means piling on more spending in 2011 and beyond, that might prove counterproductive by raising interest rates and depressing the economy in the short run.