I don't have to explain to readers that I oppose the idea of government stimulus. So I am loathe to argue about stimulus methodology, because I think one is just arguing over gradations of suck.
But if I were to discuss stimulus for employment, my first thought would be reducing the employer portion of FICA -- reduce the cost of employment, the quantity employed would likely go up (of course, rather than doing this, the administration has done just the opposite, by requiring union shops on government contracts, effectively increasing the cost of employment).
My second thought was the SBA. Most stats show that job creation is mainly in small businesses, and it appears to be small business credit that is impacted most for the 2008 banking crisis. So, instead of sending more money to state governments; or welfare recipients; or large companies who have, by failing, proven themselves to have bad management or a bad business model or both (none of whom are likely to be huge engines of private job creation). Why not find a way to increase funding to small businesses? Temporarily reduce the federal guarantee fee on SBA loans, provide tax credits for banks making such loans, something.
I called the SBA today. They said they have no idea, just like the rest of us, what is in the bill. Apparently there were a few incremental changes proposed, but nothing concrete. The only specific proposal the SBA rep made was an early provision in the stimulus plan to raise the government gaurantee fee, which hardly seems like a way to promote small business credit. It probably makes fiscal responsibility, but since when did the stimulus have anything to do with fiscal responsibility?