Yikes (*Update, **this post keeps going on)

Obama set to release economic plan filled with tax cuts and more spending? So says CNN. I couldn't agree more with both directions but when already faced with record deficit spending I'm a little hesitant to support an additional $300 billion in tax cuts and upwards of $1 trillion in stimulus spending.

*Update:

Jed Lewison has a quick breakdown of the numbers. Based on GDP, the "new" part of Obama's plan will be about 1.5%. A little small I think. But I guess if you add that in with the previous 2008 level spending, which was rather useless I think, it amounts to roughly 3% of GDP. As long as it's spent on actual stimulus areas this could really create some jobs.

**Later Update:

Looks like me and Josh Marshall are thinking along the same lines about Obama's plan. Like Josh, I'm not sure yet.


***Later, later Update:

Initial reaction has me a bit lukewarm for Obama's proposal. Like Krugman says, public investment is a much better way to provide economic stimulus rather than tax cuts. Krugman, however, brings up another good point that crossed my mind earlier this morning which is Obama's throwing in the tax cuts to back the Repubs into a corner. Maybe so. There's a really good chance the Republicans are going to claim that they are fiscally responsible and that they know what's best to get finances in order. But they had their chance. They are the one's responsible for this mess. While in power the GOP was anything but fiscally responsible. Believing that they have now, somehow, found their soul and they know how to lead this nation is mindless hogwash. They are today no more fiscally responsible than they were yesterday.

So why even bother playing ball with the Republicans. At best they can appear obstructionist but that gives them way too much credit. They are powerless, don't make them appear anything but.