Increase unemployment benefits, infrastructure spending

From Calculated Risk, an interesting interview with a Nobel-winning economics professor. Key points that I saw:

• We're in the worst recession since the Great Depression
• There needs to be a more cost efficient stimulus package--increasing unemployment benefits is a very effective stimulus
• The federal government needs to shore up state and local governments, who will be seeing lower revenues from taxes--in particular there should not be insufficient infrastructure spending

The video: