He says there is a "massive" stimulus.
First, it's not massive, whatever it is.
The payroll tax reduction is solely on the individual side. The employer portion is not affected. Therefore, no "incentive to hire". Most companies look at hiring a person based on a longer view than just a one-year, temporary change in marginal cost. Not all, including temp jobs and low wage jobs, but most.
Again, the purpose of accelerated depreciation, often a staple of IMF-type "packages", is to help companies who don't have cash or financing available to them. Corporations have ample cash, right now. If you want them to spend it, threaten the cash!
New equipment is a double-edged sword during slack demand, at least. In the short run, higher productivity might lead to fewer jobs. It depends. It didn't lead to a huge amount of hiring, when Bush-43 tried it.
Friday, December 10, 2010
Lies of Chris Matthews, Friday Version
