According to Wall Street Journal Deborah Solomon’s reporting:
Government efforts to funnel hundreds of billions of dollars into the U.S. economy appear to be helping the U.S. climb out of the worst recession in decades. But there’s little agreement about which programs are having the biggest impact. Some economists argue that efforts such as the Federal Reserve’s aggressive buying of Treasury debt and mortgage-backed securities, as well as government efforts to shore up banks, are providing a bigger boost than the administration’s $787 billion stimulus package.
Economists say the money out the door — combined with the expectation of additional funds flowing soon — is fueling growth above where it would have been without any government action.
In other words, government action was required to avoid a complete meltdown but the relative efficiency of any given government action cannot be assessed precisely, which isn’t at all surprising given we are in uncharted waters.
So much for the “government is the problem” crowd.