In an earlier post, I referred to the Post's description of three elements of the stimulus that ended up getting more money than expected as a "crap sandwich with focaccia" because while expanding broadband access and developing high-speed rail are self-evidently good stimulus, I was really iffy on the "$1 billion to upgrade airport baggage and checkpoint screening." So I asked around about it. Ryan Avent seems somewhat skeptical:
Depends on what exactly they're using the money for. If we imagine that there are ongoing shortages of x-ray machines, wands, drug-sniffing dogs, or what have you, and this money can be used to make those purchases right away, then it could be good stimulus. Or if some TSA employees are facing layoffs or more are needed, then this would contribute to healthier labor markets. It kind of depends on whether this is addressing immediate needs. If I were just looking to spend some money, I'm not sure I'd do it in DHS.On the other hand, John Schmitt, a senior economist at the Center for Economic and Policy Research thinks that it is good stimulus:The other question is whether all that security is a good use of resources in the first place. Hard to imagine that lines of people waiting to put their shampoo in a plastic baggy is productivity or security enhancing.
It's good stimulus if it's spending. There's better stimulus and worse stimulus, sure, but this is a direct government expenditure, so it's better than tax cuts, because we know people will spend it instead of saving it. It's very labor intensive, it's the kind of work that involves a lot of people doing a lot of jobs, and it's certainly the kind of thing that we can do quickly. It's labor intensive, the more labor intensive it is the more effect it will have more quickly. And we're getting extra bang for our buck that we were going to need to spend on anyway.So maybe chicken pesto on focaccia bread? mmmmmmmmmmmmmmm.....It may not make us safer, it may not make lines go quicker, but from a macro-economic perspective it's good stimulus.
-- A. Serwer
