Tuesday, May 31, 2011

Ezra's Intern Misses something

What more could Obama have done? - Ezra Klein - The Washington Post:
"I don’t know how much the administration’s PR strategy actually affects its chances of legislative or electoral success, but Krugman’s critique sounds at least plausible. But I also think, admittedly with the benefit of hindsight, a better stimulus bill could have gotten passed in early 2009. Imagine if Obama, instead of proposing an $800 billion stimulus bill that got shaved down a bit to $787 billion, proposed that bill and a full, one-year payroll tax holiday, which, using the actual revenue for fiscal year 2010 as a guide, would have come to about $632 billion (pdf). Payroll tax cuts are unusually good stimulus, with about $1.24 in GDP growth for every dollar spent on them, so this would make the whole package about twice as big and, arguably, more than twice as effective."

Temporary tax cuts have a habit of becoming permanent. Or did he miss the little dustup last winter over the Bush tax cuts?
Better media please.

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