Catching Up (a bit) with the Budget Gap and Stimulus Plans

Big money is coming to the states. How much and for what remains a bit cloudy, but things are moving along now. Joe Turner yesterday reported that Dick Thompson, the governor's stimulus chief, a $4 billion injection of stimulus dollars. On this interactive map by the Center for American Progress, the number is quite a bit higher: $10.39 billion, but I'm guessing we're comparing apples with oranges. It just goes to show how hard it is to nail anything down right now.

Regardless, Stateline.org says there's not enough federal money to erase state deficits.

And, even as the Congress moves the plan along, some economists are asking how much good it will do. Harvard economist Greg Mankiw points out:

... only 8 percent of this spending occurs in budget year 2009, and only 41 percent occurs in first two years. Note that spending on transfer payments and tax relief occurs much faster than this...

Mankiw also provides a "mature perspective" on the effectiveness of infrastructure spending by Keynes himself. (h/t Instapundit)

UC San Diego economist James Hamilton, blogging at Econbrowser, shows how to cut a 647-page bill to two paragraphs.

Meanwhile, Rasmussen reports that 57 percent of voters nationwide think tax cuts would be helpful. And Belmont business professor Jeff Cornwall sees lost opportunities to boost small businesses.

And, to pop the bubble of euphoria, Chris Edwards, director of tax policy studies at the Cato Institute, offers 10 problems with the stimulus plans.

I've not sorted this out. What do you think?