Ezra Klein concludes:
Paul Krugman vs. the White House: Stimulus edition: I do think it’s odd that the administration didn’t leave itself more rhetorical room for the stimulus to be too small. There was a “to be sure” paragraph in the president’s speech celebrating the passage of the stimulus, in which Obama said, “I don’t want to pretend that today marks the end of our economic problems, nor does it constitute all of what we’re going to have to do to turn our economy around.” But the overall tone was celebration, optimism and turning a corner. There could have been a lot more “we’re not sure this is enough, but we hope it is, and if it isn’t, we’ll be back for more.”…
The stimulus was too small, but it probably couldn’t have been much bigger…. In other words, Krugman was right. But if he had been president, I’m not sure that unemployment would be vastly lower today. Or, if it was vastly lower, I think it would be due to decisions related to the housing market and the Federal Reserve rather than the stimulus.
Ummm… Ezra, look at those last two sentences you wrote. And explain to me why putting people in charge of housing and monetary policy who took the macro situation more seriously wasn't the administration's top priority.