Thomas Friedman has a good article in the NYTimes on how stimulus money ought to be spent. He suggests, instead of giving $20 billion to the whining General Motors, give it to 20 top VCs, and encourage them to take big risks. Read Start-Up the Risk Takers.
He also acknowledges that the stimulus vis-a-vis renewable energy policy is quite good, and is likely to stimulate a lot of jobs and innovation. I agree.