Sen. Judd Gregg (R-NH) will now vote against the stimulus bill.

The final Senate vote is now set for 5:30 p.m. ET.

It pains me to say this. But Sen. John Cornyn doesn’t seem to be too bright. Cornyn was just on MSNBC explaining that spending in a severe economic downturn doesn’t make sense and should be replaced by tax cuts since individuals can spend money “more efficiently” than government. I guess he doesn’t get that the whole point of a stimulus bill is that in a severe recession individuals — acting on rationale individual economic motives — aren’t spending. And only government, as a policy decision, can spend at a high rate notwithstanding the state of the economy.

He also claimed a 3x multiplier for tax cuts, which I don’t think anyone believes. But I’m more interested in his point about the relative efficiency of private vs. public sector spending since it seemed to show that he doesn’t understand what a recession, let alone a severe recession (which has qualitatively different dynamics), even is.

I know there are contrary theories of how economies work. But not grappling with the high level of risk in the economy that makes businesses and people unwilling to spend … not sure you can enter the conversation without getting that.

From TPM Reader MF …

This is similar to a point that’s already floating around, but for all the complaints in the blogosphere that President Obama wiffed the negotiations over the stimulus out of an excessive attempt to appear “bipartisan,” it seems hard to deny at this point that Obama’s stimulus strategy has been incredibly effective. First, he proposes the package that is more or less what he would like to see enacted. Then, House Democrats run up the tab inflating it above the original targets and pass it on a party-line vote. Finally, “responsible” moderates in the Senate, including Republicans, save the day from those partisan House Democrats by bringing the package back down to earth, which just so happens to be in the ballpark of what Obama originally proposed. Done and done. It’s all political kabuki, and everyone played their part brilliantly, especially Nelson and Collins, who now get to go home and take credit for their post-partisan “fiscal responsibility.” As much as I share many people’s skepticism of all the “trust Obama’s secret plan” rhetoric, in this case, it seems hardy to deny that the strategy he had all along has worked.

I look forward to seeing your take on the stimulus process and what this says about the dynamic we can expect enacting the rest of Obama’s agenda.

For the backstory, see Greg Sargent.

Did he really hold up a dead mouse on the floor of the House? I can’t tell what’s in that little bag he shook around there.

Late Update: Price’s flack tells Greg Sargent, “It was a toy mouse, from a pet store.”

I can just see some well-scrubbed young GOP aide, new to Washington, being sent out to a pet store to find a toy mouse to use as a prop. Heady day for that kid.

Can Obama ever recover from Judd Gregg deciding not to be Commerce Secretary?

Especially since he’s taken on the status of a cult hero?

In our interview on Friday, one of the questions I asked Joe Stiglitz was: if it’s so obvious that all this Tarp 2/Bailout stuff is a bad idea and not going to work, why do we keep coming back to it?

Here’s his answer …