Just Do It?

I have now read H.R.1–The American Recovery and Reinvestment Act of 2009, as passed by the house; I feel, therefore, that I am now entitled to an opinion on it. Yes, I went through some of it’s 647 pages pretty superficially. To use Tricky Dick Nixon’s phrase, I gave some sections – like the fine points of loan and tax provisions – a “fast brush.” Nevertheless, I have formed an opinion based on what I read.

I’m not an economist, so I don’t know how to reverse an oncoming depression any more than they do, but I can recognize a well thought out program when I see one (I did that for a living). Some very good thinking went into H.R.1. I’m not prepared to do a detailed explication or even a short synopsis, but there are plenty of both available on the internets. Here are some highlights though (without going into programmatic issues):

STRATEGIC CHOICE OF TARGET AREAS: The plan selects appropriate sectors for intervention. Just read the section headings.

SIGNIFICANT ACTIONS: The plan employs appropriate interventions in the chosen sectors.

STRONG SYNERGIES: The linkages between interventions within and between sectors have been carefully designed to be mutually reinforcing and to act in concert with one another.

TRANSPARENCY AND CONTROLS: Oversight as well as monitoring and evaluation systems are built into the plan, and funding is provided for them. Requirements for transparency are spelled out, especially with respect to grants and contracts, all of which are to be available on the internet. Funding is provided on a “use it or lose it” basis: grantees and contractors must get to work fast or the money is taken back.  Section 1.1.1.2, of the plan (Additional Assurance of Appropriate Use of Funds) stipulates that Illinois can not receive any funds while Rod Blagojevich is Governor (cute).

It’s a smart plan. I don't know if it can avert a long depression, but cutting taxes sure doesn't sound smart. And it does seem as though we ought to do something pretty damn fast. Maybe Paul Krugman is right, and it’s not big enough, but let’s get it rolling and we can beef it up later.