Who Should Get the Federal Stimulus Funds

Buffeted by recession, our nation has elected a president determined to act. President-elect Obama's advisers have called for a vast stimulus package of $750 billion or more. But macroeconomic events should never lead us to toss out the first rule of prudent policy: fund projects only when benefits exceed costs. The Obama administration, therefore, faces the challenge of spending at least three quarters of $1 trillion at breakneck speed on sensible stimulus projects.