Juicing the economy will come at a cost

Boosting economic growth is great, but it's not free and it's not guaranteed. Lawmakers need to weigh the cost of any stimulus package with its benefits.

Even as Washington nears agreement on measures to minimize the effects of a recession, there is little agreement on how much such moves would boost the economy.

But one thing is certain: They will come at a cost.

Initially, President Bush and leading Democrats have indicated they envisioned stimulus
measures - cash rebates, business breaks and other proposals - worth roughly $150 billion. Some experts think the final number could be closer to $200 billion.

Even if the stimulus package proves wildly successful, however, it won't pay for itself in full, at least not in the near term.

The Congressional Budget Office estimated Wednesday that the federal budget deficit this year will increase to $219 billion or 1.5 percent of gross domestic product - and even more if increased military funding is approved. And that doesn't count the cost of a stimulus plan.

Stimulus will bump that deficit up, but not necessarily dollar for dollar. Here's why: If the stimulus effort works, the increased economic activity will generate federal tax revenue.

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