Stimulus roundup

One analysis of the stimulus package finds that it is "roughly 24% stimulus, 36% cushion (to dull the pain of the economic downturn) and 40% agenda." Sounds about right.

Meanwhile, Robert Samuelson, who I think of as a rather even-handed non-partisan guy, has the following to say about the stimulus:

As it turns out, President Obama didn't make the tough choices on the stimulus package. He could have either used the program mainly (a) to bolster the economy or (b) to advance a larger political agenda, from energy efficiency to school renovation. But Obama wanted both, and, superficially, the two can be portrayed as an enlightened partnership.

...Unfortunately, investing in tomorrow won't automatically stimulate the economy today. The $819 billion program passed by the House will only slowly provide stimulus. The Congressional Budget Office estimates that in fiscal 2009 (through this September) about 21 percent of the new spending and tax cuts will flow to the economy. For 2010, the estimate is another 44 percent. The total of 65 percent means that, by CBO's estimate, about a third of the $819 billion package would be spent after fiscal 2010.

...The decision by Obama and Democratic congressional leaders to load the stimulus with so many partisan projects is politically shrewd and economically suspect. The president's claims of bipartisanship were mostly a sham, as he skillfully maneuvered Republicans into a no-win position: either support a Democratic program; or oppose it -- and seem passive and uncaring.

But the result is that the stimulus, as an act of economic policy, is hobbled. A package so large can be defended only because the economy is so weak -- and seems to be getting weaker by the moment. The central purpose is simple: halt downward momentum. Perhaps some of the out-year spending might ultimately prove useful. But the immediate need is for the stimulus package to stimulate -- now. It needs to be front-loaded; it isn't.

Obama's political strategy fails to address adequately the economy's present needs while also worsening the long-term budget outlook. Some of his "temporary" spending increases in practice will almost certainly become permanent. There were tough choices to be made -- and Obama ducked them all.

Also, the rest of the world, who is supposed to be air-blowing us kisses with Obama in place, is not happy about the stimulus package and its buy America provisions:

This was supposed to be the year the United States came in from the cold at the annual gathering of world leaders here. But instead of receiving a warm embrace, American policies were rebuked again and again in rhetoric that recalled the anger of the Bush years — mainly aimed at what the world views as the new threat of protectionism by the United States.

“We must not allow market forces to be completely distorted,” Angela Merkel, the German chancellor, warned in a speech on Wednesday. “For instance, I am very wary of seeing subsidies injected into the U.S. auto industry. That could lead to distortion and protectionism.”

By the weekend, as word of the “Buy American” provision in the stimulus package to help the United States steel industry spread through Davos, the tone had become sharper.

“It’s extremely preoccupying that one of the first acts of the new Obama administration could be a measure that is clearly protectionist and a distortion of competition,” said Anne-Marie Idrac, the French trade minister, who tried to draw Pascal Lamy, director general of the World Trade Organization, into the battle.

Let's just hope that GOP predictions about the stimulus failing to pass the Senate are accurate.

Update: Oh, and $90 million for a liberal special interest group.

Another update: Greg Mankiw looks at what happens when you spend money quickly before having time to make a proper evaluation of needs.