How quickly would the money be spent?
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3. President Obama has set a goal for 75 percent of the money to be spent within 18 months of the bill being signed into law. That may be ambitious. The Congressional Budget Office analysis of the $819 billion House version of the bill passed last week found that about two-thirds of the money would be spent in the first 18 months. Obama aides say they expect the Senate version of the bill to include provisions that would allow for faster payouts and that innovations in their plan would lead to more rapid spending than the CBO anticipates. The pace of spending is key to the effectiveness of a stimulus plan, as economists agree that stimulus spending must be timely to have the desired effect of "jolting" the staggering economy.
The aim to spend the money quickly is one reason the package is so heavily tilted toward tax breaks and help for states, two forms of spending that Obama economists acknowledge do not offer maximum potential for job creation. Together, those vehicles account for more than half of the stimulus plan. The administration says they have the virtue of getting money circulating in the economy quickly, maximizing the stimulative effect. The tax cuts increase the package's appeal to many Republicans, although there was zero GOP support for the plan in the House.
