Shovel-ready, revisited

According to Recovery.gov, the government has now paid out $415 billion of the stimulus funds. Tax rebates account for $163 billion. Of the $252 of direct spending, the Department of Transportation has paid out $14 billion. That's 5.5%.

Maybe it would have done more stimulating if the spending had actually been directed at projects that use shovels.

But if you're a Keynesian, spending is spending. It's all part of aggregate demand. Keynesians believe it's better to do something productive with ...