The Next Stimulus Package | Reuters

I would say $300-$400 billion, aimed at least half at infrastructure and state budgets, all to be recouped in the out-years:

David Lawder: Democrats call for massive U.S. economic stimulus plan: WASHINGTON (Reuters) - The United States needs a new economic stimulus plan that pumps billions of dollars into infrastructure projects and budget relief for cash-strapped state and local governments, Democratic lawmakers said on Sunday. U.S. Rep. Barney Frank, chairman of the House Financial Services Committee, told ABC television he will put together an economic stimulus bill when Congress returns to Washington after the November 4 elections, while a key Republican said he would support an effort that "makes sense."... U.S. House Speaker Nancy Pelosi last week said a $150 billion economic stimulus plan was needed to help counteract a faltering economy shaken by a paralyzed banking system and steep stock market falls.

On Monday, Pelosi and House Democratic leaders will meet with key economists to discuss a jobs creation and recovery plan that will complement the recently passed $700 billion rescue legislation for financial institutions. Participants will include former U.S. Treasury Secretary Larry Summers, former Securities and Exchange Commission chairman Arthur Levitt and former Federal Reserve vice chairman Alice Rivlin.

Comments

[Scott Martens]

I have this theory that time stopped in 1981 at Reagan's inauguration and since then we've been going backwards in time. I know, it's nuts - and I will credit Phillip K Dick for inspiration - but back in the day lots of people thought Reagan was the Anti-Christ, so what if they were right? Think of the recent court decisions and progress on gay rights. In 1996, Congress passes the Defense of Marriage Act, for the first time specifically permitting states to deny to their residents marriage rights made available in other states, 14 years after 1981. And 14 years before 1981, Loving v. Virginia specifically denied the states the right to deny their residents recognition of marriages allowed in other states.

The 50s - 20-30 years before Reagan - was the height of the Red Scare. And 20 years after the Reagan inauguration we have... 9/11, and the concomitant Terrorist Scare.

Along the same lines, it is now almost 28 years since 1981, and just over 28 years before 1981 was 1952 when Truman tried to nationalize the steel industry and failed - a key industry and the backbone of American industrial might. And what is going on in America today? The apparently successful nationalization of the finance industry, the backbone of America's current prosperity. Keynes was the man of the past in 1981. He was the man of the present in immediately post-war America, and now, he's back!

Really, it's like living in Bizarro World. Or that Red Dwarf episode where time goes backwards.

So... 1981 + (1981 - 1917) = 2045. Perhaps now is the time to get in on the ground floor on Marx? Especially since 1981 + (1981 - 1933) = 2029 - a bad scene all around. I'm afraid we'll all be dead before we get to Ricardo, Mills, Smith and mercantilism.

[sandy]

Makes a lot of sense, as investing in infrastructure helps achieve twin objectives - make America competitive and saves a lot of construction jobs.

[Neal]

Given that the largest rising component of state budgets are wages, benefits and retirement programs and that revenues for states are falling---$150-200B would probably maintain the status quo, without a stimulus effect.