It has gotten a bad name since the American Recovery and Reinvestment Act went into law in 2009, but more spending by the federal government would make sense, say a sizable group of economists say. Stimulus money would be most effective if it goes toward useful investments in things like ports, roads, research labs, and broadband networks.
Critics argue deficit spending will be matched by a decline in consumer confidence, as households expect their future taxes to be higher. For now, the political climate means the best case for proponents of stimulus may be a situation where big federal spending cuts are postponed.
