Arnold Kling answers in a single sentence exactly why the “stimulus” will not work:
This is all based on a Keynesian type of macro analysis.
Because, capital is fixed and homogenous, labor is the only factor of production, we can ignore international trade (except for the fact that it creates war), division of labor is a bad thing, as is saving, and of course, the piece de resistance: wars are good for an economy.
If Obama was really smart (or whoever puts the words into the teleprompter), he’d just have the fed print tons of money (okay, that’s already been done), then hire a bunch of people to fill bottles with the cash (gee, look at all the jobs!!) then have people bury them (oh, wait, better make sure fillers and diggers are different. Union rules you know. But would that be division of labor? Oh, nevermind…). When the time is right, like before the next election perhaps, send out the masses to dig them up.