Paul Krugman is clearly correct that stimulus spending and not austerity measures will return our country to prosperity. However, stimulus spending on food stamps, while it improves the lives of the recipients, merely grows the GDP without any meaningful multiplier effect and generates little tax revenue. Spending to build bridges and improve highways creates meaningful tax paying jobs and has a substantial multiplier effect which will grow the GDP and reduce the federal deficit.
Much too small a portion of the Obama stimulus spending has been spent on creating good taxpaying jobs. The majority of the jobs created generated negative federal income taxes. It is no surprise that we have slow growth and excessive deficits.