The main problem the simulus is trying to avoid is capital destruction. At some point, if enough people get laid off, it becomes a self-reinforcing cycle. Now

The main problem the simulus is trying to avoid is capital destruction. At some point, if enough people get laid off, it becomes a self-reinforcing cycle. Now, instead of a few people being laid off for a couple of months, companies start to shut down operations for good because there is reduced demand (Google Austin, anyone?). Once you shut down an office (or factory, or mall, or whatever), it can take years before anything pops up to replace it. There really is no benefit to having a bunch of unemployed people lying around. I think it is fair to argue about the best way for the government to stimulate the economy, but doing nothing is not really an option.