My main reaction to the CBO's new review of the House stimulus bill (see the director's blog; a fuller version [pdf]) is that the package is much smaller than previously supposed. The CBO says it would increase the budget deficit by $816 billion during 2009-2019, but by only $525 billion when it is most needed, in the remainder of fiscal 2009 and 2010. The stimulus for the rest of 2009 is put at just $169 billion. The 2009-2010 stimulus needs to be much bigger, in my view. And the ten-year stimulus should be much smaller: if you are going to look that far ahead, you should see lower spending and higher revenues relative to baseline.
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