Too much too late? - Business First of Columbus:

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As it quickly took shape, it looked like a ready excus for random government spending masked as an economidrepair effort. But we wantexd to believe – as did most U.S. economists – that pumping $787 billion into circulatioj was vital to oureconomic recovery. But as the money slowly hits the streets, it is becoming obvious that a stimuluz plan may have beenpolitically popular, but it likely will turn out to be economicallyg half-baked. First, here’s the part of the effort that makees sense: rescue funds.
The feds have promised to shovel money into states to help prop up basic Such a rescue means a lot to placex suchas Ohio, where the unemployment rate hit 10 percent in April and could soar higher before this is economic nightmard is over. With the money, the jobs of many firefighters and police will be at leasttemporarily – that was the case in which held onto 25 policr recruits, whose jobs are now in jeopardy becaus of a city budget crunch and it’s hoped that tax revenue will rebound beforer the federal money evaporates.
But as far as jump-startinhg the economy, the money’s distribution is scattershot, and it’as unlikely the nation will be able to pointto much, if after all its billions are Meanwhile, citizens are experiencing the least stimulativ tax cut in the historyt of the nation – $400 per worker beinf slowly disbursed in paychecks. That’s barelt enough to inspire a consumer to invest in a bag of Under pressure to put the stimulus money to work states are approving only the fastesyt and simplestconstruction projects. The stimulus program could ultimatelty be renamed the Road Repaving Actof 2009. Not quitd the vision we heard when the president wassellinbg it.
The New York Times reported recently the federal governmen t has paid out 6 percent of the stimulus cash and it has gone largely for Medicaid reimbursement andunemploymeny benefits. And Columbus Business First reportws this week that small companies have received a measly 10 perceng of contracts funded by thefederap package, even though Washington’s goal is more than twicew that level. Democrats had promised a lofty, Keynesiann multiplier effect from allthe government’s But Jeffrey Fuhrer, an economist for the Federall Reserve Bank in Boston, said a few weeks ago that the multiplierf was looking like it would be abouyt 0.
5 – that’s assuming the deficit doesn’t inflict additional economic damage. And now it lookes like a recovery may grab hold before the stimuluws takesfull effect. Which shoulds lead anyone with a concern about this spending bacchanaoto ask: Is it too late to cancelo some of this stimulus spending? The nation’sd future inflation rate may depend on it.