Conservative economist Martin Feldstein made waves last year when he declared his support for a fiscal stimulus bill to combat the recession. Last December, Feldstein wrote in the Wall Street Journal that "a temporary rise in DOD spending on supplies, equipment and manpower should be a significant part of that increase in overall government outlays." Thus the idea of defense stimulus was born.
Today, Feldstein looks at the House stimulus bill and calls it "an $800 bill mistake":
The problem with the current stimulus plan is not that it is too big but that it delivers too little extra employment and income for such a large fiscal deficit. It is worth taking the time to get it right.
It's up to Senate Republicans to argue in good faith for a better bill.
