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Every dollar of stimulus could thus result in two dollars of output a multiplier of two.
But, ISI also notes, every dollar of stimulus extended now will add a dollar to the extent of the fiscal contraction felt a year later.
By contrast, Mr. Zandi estimated, most tax cuts produce less than a dollar for each dollar of stimulus, especially if the tax cuts are temporary, because people save at least some of their extra money.
She explained the impact of different types of stimulus, giving a lesson on "fiscal multipliers" — the term economists use to describe the economic impact of every dollar of stimulus.
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And eighteen million dollars of stimulus money has gone to dead people, according to a new government audit report.
The Federal Trade Commission warned consumers that fraudulent Web sites and e-mail messages were claiming that they could help people get thousands of dollars of stimulus money — in exchange for small payments, credit card numbers or bank account numbers.
It is a shame because here we are as a country scrounging around for a few billion more dollars of stimulus to help our unemployed and small businesses — when the biggest stimulus of all is hiding in plain sight.
The Fed had been providing trillions of dollars of stimulus to the banking system and financial markets though a bond-buying program wonkily called "quantitative easing" or "QE".
President Obama has made a single-minded priority of the importance of using this negotiation to provide hundreds of billions of dollars of stimulus for the economy -- from unemployment benefits, tax cuts for the middle class, and the payroll tax holiday.
A few hundred billion dollars of stimulus funding put 450,000 teachers back to work, the U.S. Education Department calculates, supporting a union priority of growing its ranks and keeping class sizes small; on the other hand, the Race to the Top competition angered unions by encouraging the growth of charter schools and evaluations based on test scores.
Mark M. Zandi, chief economist at Moody's Economy.com, a forecasting firm, told a forum of House Democrats this week that the "bang for the buck" — the additional economic activity generated by each dollar of fiscal stimulus — was highest for increases in food and unemployment benefits.
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Justyna Jupowicz-Kozak
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