Here is a good summary of the viewpoint of spending over tax cuts. I'll follow up with some statistics about the relative stimulative affects of types of spending. (This is from
Debate: 2009 US economic stimulus - Debatepedia. You can view the 'con' arguments there.)
* Spending provides more economic stimulus than tax cuts "Filling the hole". Economist. Dec 11th 2008 - "Tax rebates or tax cuts will get more money into consumers’ hands quickly, but in today’s environment much of that boost will simply be saved, as people plug the holes in their finances left by the collapsing values of their houses and retirement portfolios, or just pay off debts. If consumers are unwilling to spend, the best way for a government to boost demand is to spend more itself. One approach is to send large dollops of federal cash directly to America’s struggling states"
* Americans voted for progressive thinking of 2009 US stimulus President Barack Obama - "The notion that tax cuts alone will solve all our problems; that we can ignore fundamental challenges like energy independence and the high cost of health care, that we can somehow deal with this in piecemeal fashion and still expect our economy and our country to thrive. I reject those theories, and so did the American people when they went to the polls in November and voted resoundingly for change."[3]
* Majority of US stimulus is immediate to fight recession now. Jim Horney, director of federal fiscal policy for the Center on Budget and Policy Priorities - "The vast majority of what is in these two bills is pretty good stimulus."[5] This includes "automatic stimulators", such as unemployment benefits and food stamps, money that is typically quickly and fully spent. In addition, the majority of money will be spent within the first year of the stimulus package, providing more short-term, "good" stimulus to get the economy rolling quickly.
* Longer-term spending is not "waste"; helps sustain stimulus Steven Pearlstein. "Wanted: Personal Economic Trainers. Apply at Capitol." Washington Post. February 6, 2009 - "Let’s review some of the more silly arguments about the stimulus bill, starting with the notion that 'only' 75 percent of the money can be spent in the next two years, and the rest is therefore 'wasted.' As any economist will tell you, the economy tends to be forward-looking and emotional. So if businesses and households can see immediate benefits from a program while knowing that a bit more stimulus is on the way, they are likely to feel more confident that the recovery will be sustained. That confidence, in turn, will make them more likely to take the risk of buying big-ticket items now and investing in stocks or future ventures."
* Much stimulus rightly goes toward long-term societal needs Steven Pearlstein. "Wanted: Personal Economic Trainers. Apply at Capitol." Washington Post. February 6, 2009 - "what's striking is that supposedly intelligent people are horrified at the thought that, during a deep recession, government might try to help the economy by buying up-to-date equipment for the people who protect us from epidemics and infectious diseases, by hiring people to repair environmental damage on federal lands and by contracting with private companies to make federal buildings more energy-efficient."
Good/bad stimulus: Does the stimulus package contain mostly "good" stimulus?
* Almost all government spending has some stimulus effect Scot Lehigh. "A large stimulus bill for large problems". The Boston Globe. February 6, 2009 - "Although one can debate the necessity or importance of various projects, almost any new spending will have a stimulative effect - including resodding the National Mall."
* Stimulus funding for unemployed ensures immediate spending. Barack Obama. "We Can't Afford to Wait". February 9, 2009 - "this plan will provide for extended unemployment insurance, health care and other assistance for workers and families who have lost their jobs in this recession. [...] That will mean an additional $100 per month in unemployment benefits to more than 450,000 Indiana workers, extended unemployment benefits for another 89,000 folks who've been laid off and can't find work, and job training assistance to help more than 51,000 people here get back on their feet. [...] That is not only our moral responsibility - to lend a helping hand to our fellow Americans in times of emergency - but it also makes good economic sense. If you don't have money, you can't spend it. And if people don't spend, our economy will continue to decline."