"I think at this point there needs to be a focus on an immediate increase in spending and I think this is a time when deficit fear has to take a second seat . . . I believe later on there should be tax increases. Speaking personally, I think there are a lot of very rich people out there whom we can tax at a point down the road and recover some of the money."
-- Barney Frank, October 20, 2008
The election is still two weeks away, but we are already living in the world of Obamanomics. In fact, on fiscal policy we've been living in that world at least since February when the Bush Administration conceded to the Congressional priority of Keynesian fiscal "stimulus." That didn't work very well, but no matter. Spurred on by Barack Obama, Democrats in Congress are preparing Round Two, this time in the form of $150 billion to $300 billion in new spending.If we may borrow a phrase, this is the triumph of hope over experience. The one thing Washington hasn't failed to do in recent years is spend, yet the economy doesn't seem to have improved on the event. Brian Riedl, a budget expert at the Heritage Foundation, has calculated that in 2008 Congress enacted $332 billion of "emergency" supplemental spending bills, only half of which was for the Iraq war. Do you feel stimulated?