Monday, December 6, 2010
Bang for the Buck – Economic Policy Institute versus DC Politicians
Even the Senate Republicans would tell you that they want to reduce unemployment in the short-run and the deficit in the long-run. High bang for the buck fiscal stimulus is something we should all support. A great is example is this proposal from Lawrence Mishel, which has gathered the signatures of 33 prominent economists. Senate Republicans, however, don’t like this idea preferring to lobby hard for a budget busting extension of tax cuts for the well to do. Our President is on board with Mishel’s call for extending unemployment compensation but the Senate Republicans will not agree to this unless they get a concession on their hope for tax cuts from the well to do. Well, it seems our President is willing to bargain by letting there be a two-year extension of the Bush tax cuts. So let’s see – a temporary tax break for households who are not borrowing constrained. In other words – no bang for a lot of bucks! This is leadership?