The "stimulus" is nonsense. Really. Very little of it can even be construed to potentially have an impact. For the most part it was political payback—pork—plain and simple.
The idea that we should spend our way out of overspending is... bizarre.
People need to remember that during the FDR administration, total federal spending was a fraction of what is is now—even before Obama—as a fraction of GDP. If FDR type spending solved depressions, it would be impossible for us to be in this predicament, since spending for the last decades has been a higher % of GDP than 1930s spending.
Total outlays in the 30s
at most reached 10% of GDP. Most of the time it was closer to 1/2 that.
That hasn't touched 14% since 1950, and it's typ[ically 17-20% of GDP.
That means "normal" modern spending is 3-4 times 1930s averages, and 2x the most ever spent during the Depression.
2X FDR spending as the
norm.
Spending doesn't help.
http://www.gpoaccess.gov/usbudget/fy05/pdf/hist.pdf