Change in Plans

As of May 22, the government had spent only 5% of the $787 billion in "stimulus" money.

This is consistent with the fact that the "stimulus" bill passed in February had a relatively small portion of the money spent this year, and large amounts spent over the next 5-10 years. Whatever the merits of such spending in general, and I'm pretty dubious of it as are many economists including some of Obama's advisors in their work before joining the administration, there is no "stimulus" benefit unless it is spent immediately.

Federal Reserve Chairman Ben Bernanke called on the government to reduce its staggering $2 billion budget deficit, due to the risk of higher interest rates choking off economic growth.

So here's an idea: cancel the rest of the "stimulus" plan and save $750 billion.

It will calm markets that the deficit will come under control which will reduce inflation fears and lower interest rates, and since so much of the money is to be spent in out years rather than this year anyway, it won't retard the recovery.