The Stimulating Effects of Monitoring Volcanoes

The consensus piece of apologetics for Jindal's anti-USGS remarks appears to be to claim that even though volcano monitoring is, of course, a worthwhile investment, it is not economically stimulating, and therefore does not belong in the stimulus bill.

To claim that this is what Jindal was actually trying to say requires a phenomenally over-generous interpretation of his speech. But forget what Jindal did or did not say, or mean to say, or imply - his big flop is yesterday's news now. Considering the argument that volcano monitoring does not belong in the stimulus bill on its own merits... I just don't get it.

I am not an economist, and I hope that people with a grasp of macroeconomics and fiscal policy beyond my Econ 101 will feel free to weigh in here. My understanding, though, is that in general, a good economic stimulus project is one that hands money to people who will immediately turn around and hand it to someone else. While economists can argue forever about Keynesian multipliers (and Internet kibbitzers can argue forever about which types of imaginary example people have the most virtuous money-spending habits), the rule of thumb is that good stimulus projects spend ...