Was stimulus too small?
NY Times:
Democrats oppose tax cuts even if they work because they are control freaks who think they can modulate the economy by directing spending to their constituency groups. Democrats don't really understand the dynamic effect of tax cuts on job creation and economic growth.
Now that unemployment has topped 10 percent, some liberal-leaning economists see confirmation of their warnings that the $787 billion stimulus package President Obama signed into law last February was way too small. The economy needs a second big infusion, they say.The stimulus bill has been a political disaster for the Democrats and remains one. A recent poll showed voters favor tax cuts adn spending cuts to stimulate the economy. It found only 21 percent agreed with Krugman on a bigger stimulus. 62 percent favor tax cuts.
No, some conservative-leaning economists counter, we were right: The package has been wasteful, ineffectual and even harmful to the extent that it adds to the nation’s debt and crowds out private-sector borrowing.
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Democrats oppose tax cuts even if they work because they are control freaks who think they can modulate the economy by directing spending to their constituency groups. Democrats don't really understand the dynamic effect of tax cuts on job creation and economic growth.
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