Paul Krugman runs the numbers and concludes, "we’re probably looking at a [stimulus] plan that will shave less than 2 percentage points off the average unemployment rate for the next two years, and possibly quite a lot less. This raises real concerns about whether the incoming administration is lowballing its plans in an attempt to get bipartisan consensus." The Obama administration has publicly stated that they want 80 votes in the Senate. That's probably coming from the congressional leadership, which faces elections in tow years. But attracting half of the GOP means concessions: A smaller bill. Tax cuts, not all of them progressive, some of them simple lump fund transfers to business with little in the way of stimulus effects. The idea behind 80 votes is simple: It ensures bipartisan cover. It's hard for the GOP to run against what it voted for. And it's better if the economic response doesn't become a partisan war. But Democrats control the Congress and the Presidency and will be blamed for whatever happens in the next two years. As such, it's hard to imagine that they're not better off with a more effective bill that attracts fewer Republican votes but provides more economic stimulus.
