Just now House minority leader Boenher is announcing that their opposition bill will create more jobs, yet their stated plan is simply more tax cuts. The minority leader is using a multiplier of 2.2 for tax cuts. I don't have any idea where that comes from, and I look forward to hearing more.
Tax cuts have never had any better than a 1/1 multiplier, basic macro 101.
Still, I am not too happy with the way the stimulus is winding its way through. We still can't see what's in the thing. Infrastructure, especially light rail and smart grid have been put on the back burner. These in favor of tax cuts to win over republican support which is not likely to happen anyway.
If there's not going to be bipartisan support, let's have our infrastructure.
Wednesday, January 28, 2009
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