Some commentators seem to be ignoring that we are already under significant fiscal stimulus. Under stay-the-course in Iraq, it's over $120 billion a year or very nearly 1% of GDP annually in stimulus that we've enjoyed under Bush.
The BEA accounting says that the Bush Administration hasn't enjoyed that much of a growth contribution from National Defense, but all the revised numbers aren't in yet.
TAX CUTS WILL UNLEASH INVESTMENT AND THE ECONOMY WILL SOAR
Remember that? Not so much. Look at the numbers (below).
Maybe - just maybe - when you cut taxes on the wealthiest, it turns out that they prefer to keep their investments in NON-risky savings, and don't promote risk-taking and capital formation at all...
Are other people tired of listening to right-leaning economists and ready to say Goodbye to All That?
Investment has been ... lackluster under low-tax regime imposed by Bush and endorsed by Greenspan, leading to the worst of all possible worlds: slow growth, rising inflation, and a deficit brought about by a distinct revenue problem.
src: BEA, NIPA, Table 1.1.1. (old table S1)
Monday, January 7, 2008
Fiscal Stimulus - Tap is Already Open, Right?
