Why Stimulus Does Not Stimulate

Great paragraph from Winterspeak:

I think they oppose the stimulus because it does not "stimulate". When the "stimulus" was first touted, it was rejected because it was too slow, and the money was targeted towards political interests, not households, and therefore would not help the economy. Here we are months later, and the stimulus has come too slowly, and has gone to political interests, not households, and how not helped the economy. Unemployment is nearing 10%, and continuing to rise. If the Obama tries to get another stimulus, it again will be too slow, and send money to political interests, not households. Critics were right the first time, and they are still right.

But don't tell that to Paul Krugman:

Fiscal expansion bothers people because it violates the dogma that government is the problem, not the solution, whereas monetary policy has become accepted as a mainly technocratic thing without political implications.

That must be it Paul. It would explain why that folks in favour of a "statist" policy such as raising gas taxes are also in favour of stimulus. Well, that is except for me and Mankiw and dozens of other economists.

I sometimes wonder how on earth did this guy win a Nobel prize? But then I re-read his early work - it is truly Nobel worthy. Has Paul Krugman become the economics equivalent of Willie Mays with 1973 Mets, falling down in the outfield while trying to make a play?