Economists raise doubts about alternative-energy spending

Obama's new budget chief, Peter Orszag, has expressed doubts about Obama's plan to spend billions on alternative energy schemes. In his previous job as head of the Congressional Budget Office, Orszag wrote a report in January saying that some forms of alternative-energy spending "are totally impractical" for stimulating the economy and others "could end up making the economic situation worse" by adding to the federal debt.

The specifics of the spending are crucial. Orszag's report said that grants to develop alternative-energy sources — which were one part of a Democratic stimulus package blocked by Republicans this fall — won't help spur the economy. And research money "is a transfer (of funds) to Ph.D. students," Reinhart said... [snip]

At a meeting Tuesday on energy with business and environment groups, Sen. Majority Leader Harry Reid, D-Nev., said an economic stimulus bill now being crafted could devote up to $100 billion to alternative-energy spending...

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