When listening to President Obama’s dire predictions of “catastrophe” if a stimulus bill is not passed now now now now now, is anyone else reminded of the global warming debate?

Even most skeptics about what Taranto calls “global warmism” would concede that there are valid reasons to want to reduce the use of fossil fuels and the resultant greenhouse gases. The debate arises over what measures should be taken, and how urgently. (Now now now now now!)

Similarly, there seems to be widespread consensus that the economy is in terrible shape, and that an increase in economic activity would help. The debate arises over how best to stimulate the economy, and how urgently.

In both cases, proponents of “doing something” now now now now now maintain that there is no time to worry about the possible side effects. But I firmly believe that when everyone around you is clamoring for immediate dramatic action, that’s exactly the right time to take a deep breath and think hard about the consequences. A few years from now the specifics of the stimulus package will be a lot more important than whether the bill was passed in February or March.

The one thing that seems clear to me is that if we are going to make a multi-hundred-billion-dollar effort to stimulate the economy, it should be done through a combination of a) tax cuts for lower-income people (pushing stimulus activity down to the individual level, among people who are likely to spend) and b) accelerating government spending that is destined to occur anyway.

That, of course, is not what the Democrats are planning. Here’s Krauthammer, on the “fierce urgency of pork” behind the “legislative abomination” that is the stimulus bill (emphasis added):

It’s not just pages and pages of special-interest tax breaks, giveaways and protections, one of which would set off a ruinous Smoot-Hawley trade war. It’s not just the waste, such as the $88.6 million for new construction for Milwaukee Public Schools, which, reports the Milwaukee Journal Sentinel, have shrinking enrollment, 15 vacant schools and, quite logically, no plans for new construction.

It’s the essential fraud of rushing through a bill in which the normal rules (committee hearings, finding revenue to pay for the programs) are suspended on the grounds that a national emergency requires an immediate job-creating stimulus — and then throwing into it hundreds of billions that have nothing to do with stimulus, that Congress’s own budget office says won’t be spent until 2011 and beyond, and that are little more than the back-scratching, special-interest, lobby-driven parochialism that Obama came to Washington to abolish. He said.

Krauthammer was writing about the House version of the bill, but I’ve seen little reason to believe that the Senate compromise reached last night is any better.

Meanwhile, Harvard economist and former Chairman of the Council of Economic Advisors Greg Mankiw describes “My Preferred Fiscal Stimulus“:

I would institute an immediate and permanent reduction in the payroll tax, financed by a gradual, permanent, and substantial increase in the gasoline tax. I would make the two tax changes equal in present value, so while the package results in a short-run budget deficit, there is no long-term budget impact. Call it the create-jobs, save-the-environment, reduce-traffic-congestion, budget-neutral tax shift.

I recognize that some state governments are now struggling in light of the macroeconomic crisis. For the next two years, I would let each state governor have the authority to divert a portion of the payroll tax cut in his or her state and take the funds instead as state aid. This provision would essentially be giving governors the temporary authority to impose a payroll tax on his or her citizens, collected via the federal tax system. Those governors who think they have valuable infrastructure projects ready to go would take the money. When designing a fiscal stimulus, there is no compelling reason for one size fits all. Let each governor make a choice and answer to his or her state voters. It is called federalism.

Note that by allowing governors (and I think you’d have to include state legislators) to determine whether to substitute spending for tax cuts, Mankiw’s proposal would mean that any decision about whether to build schools in Milwaukee would be made in Milwaukee, or at least in Wisconsin. And by gradually increasing the gasoline tax to offset the immediate payroll tax cut, the proposal would even… wait for it… help counteract global warming.