Democrats say they’ll pass a major infrastructure bill within two weeks after Obama is inaugurated, but how big will it actually be? How much will be spent on schools, lightbulbs, roads, bridges to nowhere, and everything else that can put people back to work fast. Pelosi and Reid have said $500-$600 billion. $850 billion has also been floated. Bloomberg notes that a number of economists are pushing for a $1 trillion stimulus.
We think the number will keep growing before a plan is passed. Remember, just a few weeks ago, Paul Krugman was pushing for a “bold” monster stimulus plan of $600 billion. Now that’s on the low end of expectations. As long as politicians think they’re doing something big by spending other people’s money, there really aren’t any limitations on what they’ll do. Look for a number north of $1 trillion.