Time is Not on Our Side

When you see conservative complaining that the stimulus bill is too expensive and won’t be fast-acting enough, keep in mind that had they not blocked stimulus last year on the grounds that it was too slow and expensive, we probably wouldn’t be in a position today where we need such a large fiscal expansion. The further down the spiral you go, the more aggressive you need to get to reverse the vicious cycle and the bigger the threat that eventual recovery will be accompanied by inflation.