The IMF also makes the point in the executive summary that "fiscal consolidation in advanced economies typically detracts from short-term growth." In other words, if you cut government spending, you hurt short term growth. And as Matt Steinglass points out in Democracy in America, the IMF has concluded that fiscal consolidation to the order of 1 percent of GDP leads to a 0.5 percent decrease in real GDP and a 0.3 percent increase in unemployment.
So far we have paid out $537 billion from the original $787 billion that was authorized. That constitutes 68% of the authorized funds.
I'm not saying we pass another stimulus tomorrow. I'm saying it needs to be part of the policy conversation. Paul Krugman has been all over this here, here, & here, and clearly he has a point of view, but he's also a Nobel Prize winning economist who's research focused on the Great Depression. Maybe we should listen to him instead of waiting for him to say "I told you so." (Which has said many times in the past couple years)
UPDATE: Jan Hatzius, economist with Goldman Sachs, has a grim outlook for the U.S. economy over the next 6 to 9 months. He also notes "The reason is...the impulse from fiscal policy [is] likely to continue deteriorating through 2011."