So for now at least, academic macro models have declining policy relevance in fiscal policy discussions. Partly this is a reprimand for getting things so wrong in the last crisis — a stern admonishment to go back to the drawing board. It’s also probably a recognition of the fact that sometimes politics supersedes the tradeoffs that economists study. Someday, if and when we have better macro models, and if and when the economic costs of government spending start becoming apparent, this situation may change. But for now, macro in the real world is “GIVE PEOPLE MONEY.”