Fiscal Stimulus but for Whom

Bernstein: “As long as there is still slack in corners of the labor market then this kind of fiscal stimulus of the economy near full employment is a kind of test I support.” From the article, The Republican Fiscal Stimulus Could Be Bigger Than Obama‚Äôs. The devil is in the details. What is the composition of this spending? Democrats are fighting for funding increases to domestic programs that match any increases in military spending. How much spending will go towards creating new infrastructure, securing healthcare for all, supporting education, supporting environmental regulation and studies, and clean energy? How much spending will go towards homeland security, towards subsidies for fossil fuel extraction, etc? Spending will create jobs yes, but will those jobs enhance the productivity of our economy, or will they squander natural resources, will they endanger the livelihood of workers? While we are embarking on a stimulus, we are well off to ask these questions in advance.