Stimulus - Not Needed

My earlier post on this matter notwithstanding, the economic stimulus plans being bandied about aren't needed. The 75 basis point rate cut will likely do the job, and any stimulus plan will simply be too late (March at the earliest) to have any effect. If it results in permanently lower taxes, then I'm fine. The gist of my earlier post was that the clamor for stimulus actually creates a political climate where that could happen. But that is not what is happening. My recommendation now is do nothing.

Here is Stephen Bainbdridge's roundup of reasons not to pursue a stimulus package.

Michelle Malkin is even more critical!

Japan tried fiscal stimulus for a decade, and it didn't do much other than increase Japan's overall debt burden and create an even more entrenched pork-barrel political system.