Larry Summers: A Badly Designed US Stimulus Will Only Hurt the Working Class: "Rüdiger Dornbusch made an extensive study of... populist economic programmes....
Over the medium- and long-term they were catastrophic for the working class in whose name they were launched. This could be the fate of the Trump programme given its design errors, implausible assumptions and reckless disregard for global economics.... Tax credits for equity investment and total private sector participation that will not cover the most important projects, not reach many of the most important investors, and involve substantial mis-targeting.... The highest return infrastructure investments--such as improving roads, repairing 60,000 structurally deficient bridges, upgrading schools or modernising the air traffic control system--do not generate a commercial return and so are excluded....Trump’s global plan... rests on a misunderstanding.... The plan seems to assume we can pressure countries not to let their currencies depreciate.... [But] not even US presidents... can repeal the laws of economics. Populist economics will play out differently in the US than in emerging markets. But the results will be no better...
Wow, that was a close call in 2010, good thing we didn't listen to Krugman. Rednecks saved the day then but now? Dunno, the market has already charged the US Senate the cost, $150 billion/yr, and they haven't spent a dime! Maybe we will have Hillary regrets.
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