James Pethokoukis
Politics and policy from inside Washington
Obama’s reverse stimulus on its way
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Jed Graham of IBD highlights the coming fiscal drag in a pretty picture:
Me: What would that mean for GDP growth? A pre-financial crisis analysis by Goldman Sachs predicts, for instance, found that getting rid of all the Bush tax cuts at the end of 2010 would cause a 3 percentage point drop in the economy in 1Q 2011. In any event, anti-growth fiscal policy is one more reason to believe in the dreary New Normal
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so reversing the Bush tax cuts for the wealthy would be reverse stimulus, but increasing health care spending on working class folks would not be stimulative? You appear highly selective in your “stimulative” definitions…
I hope all the folks who voted for “change” are happy. They’re not getting their Obamabucks as they thought. Hmm.
It is easy to define the options regarding how to get out of the mess: cut spending in the major categories: defense, social security, medicare (not this year or next amidst a massive demand contraction but soon thereafter) or raise taxes. What is challenging is getting enough folks to agree on which of those options to choose. What do you want to do?
Obama gonna pay my gas and mortgage!
Chi Democrat seems to not understand the health bill will start collecting taxes in 2010, but not start providing any benefits until 2014. The net of this is fours years of increased taxes that would slow the economy.Rick
Republicans aren’t satisfied with having the responsibility of creating the largest deficits in American history, creating the two largest land busts in American history, denying that global warming exists, coveting religious charlatans, continuing to believe in trickle down economics, believing that Americans own all the natural resources in the world and will send troops to prove it, allow corporations to control government, allow energy companies to use undisclosed chemicals in fracturing, Sarah Palin and the list goes on and on.When humans were developing tools to advance themselves in an agrarian society republican ideas were making useful contributions to society. That time is nearly a century behind us and now that man has developed the ability to create synthetics in the fields of chemistry, finance and one could argue government officials, it is time for humans to more actively engage our cognitive abilities to enrich our lives and the lives of our children. We must throw away the preditory behavior that advanced an agrarian society and move toward adopting a more responsible state of governance that reflects the power of our intellect.
Rick,Which is presumably why the chart cuts off at 2013 instead of showing the out years when the net impact of the reform will be neutral.