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Has the stimulus failed?

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Macro is too often ex-post story-telling. Arnold Kling wonders [2] if a small stimulus is just “a big stimulus that failed.” I love that. He then observes:

Given how difficult it is for government to spend money both quickly and efficiently, I would hope that those who wish to see more stimulus would at least be open to the idea that Bryan suggested and that I tried to promote, which is eliminating, for some indefinite period, the employer contribution to the payroll tax (explicitly putting more IOU’s into the Social Security trust fund, if you are worried about that). We need private sector job creation. Let’s have a stimulus that focuses on that goal, rather than on other goals.

I prefer a more radical proposal. [3]

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