The second measure is allocation, and it may be the most important factor. Where the funds are actually allocated will be a crucial determinant in the effectiveness of the package. If the funds are not properly allocated within appropriate areas of education, public infrastructure, and companies then the package may fail to stimulate growth for the economy. Just one example of where the funding could be misappropriated is in the educational sector. Arne Duncan, the recently appointed secretary of education, will be held accountable for dispensing $100 billion to America’s public schools and universities. Until now, the department of education was not responsible for funding schools with anything close to this amount. Former Secretary of Education Margaret Spellings was quoted on the issue as saying, “The point is, it’s never been done before, and as much confidence as I have in Arne Duncan, there’s an awesome opportunity for slippage with that much money moving through the meat grinder." Also, until last month Arne Duncan was only responsible for public schools in the city of Chicago. This is a major responsibility to fulfil, and it is possible that neither the department of education nor Duncan, who up until now oversaw one school district, will be able to handle such a responsibility in due time.
The third measure of the package deals with external effects, and this means the effects that it will have on our international relations. Much to the rest of the world’s dismay, some “Buy American" policies will surely be included in the stimulus package. This upsets the rest of the world [especially developing countries] at a time when they are dependent on foreign countries [particularly the United States] for trade to jump-start their economies. The negative effects include future reduced trade for America with areas such as the European Union, who even threatened to retaliate against such protectionist measures. Reduced trade in the future will stunt the growth of American industry in the long run, causing the recession to linger for longer than it should.
Overall, it is quite important for this stimulus package to adhere to such criteria in order to stimulate growth for the American economy. The world has seen failed stimulus packages before. Just for comparison, one can look at Japan’s response to economic crisis in the 1990s. Ten major stimulus packages totalling more than 100 trillion yen (or 1.1 trillion dollars) were implemented in the 1990s, and it is generally accepted that these packages were ineffective due to poor timing and allocation. All America can do is hope that their government is carefully administering this plan, from the federal to local levels, being mindful of the egg they are carrying on a spoon.