The President (thanks again to Fireside special guest host, Vice President Biden!) strongly urges both parties in Congress to pass the compromise on tax cuts, unemployment insurance, and job creation. Not doing so would hurt the middle class, those struggling to find work, and the economy itself.
Remember when Krugman said that we tried to fill a $2 trillion dollar hole in our economy with $787 billion worth of Infrastructure projects and tax cuts?
Well, he was right. That wasn't enough. It was just enough to stop the slide. (Remember, no how much Krugman's columns may or may not annoy you, the man is a Nobel Prize winner in Economics. He always gets his Economics numbers right. His political sense leaves much to be desired, but whenever you read his stuff, you have to keep these two ideas in your head. He can be right about numbers, and usually wrong about the Politics.)
And he was certainly wrong about was being able to get more through that Congress. A one $1.2 Trillion dollar Stimulus even though $2 trillion is need? Naaahhh. Big numbers scare those guys.
But if you think about it, maybe Professor Krugman was right. More Stimulus is about to pass the Congress, it just didn't happen at the beginning of the President's term when it should have.
However you feel about the coming Tax Cut Deal, remember its another $700 billion stimulus. Still too much in Tax Cuts for the rich, but a lot in Tax Cuts for everybody else.
So now, after this deal passes...and longtime reader Charmed86 is right (waving hi!), it's gonna pass...we will have filled 1.5 Trillion of the 2 Trillion dollar hole Krugman talked about.
If we got back to 2.2 growth with just the original Stimulus...what will adding this Stimulus do to that number?
The President just bet his Presidency that it will...
I think it will, too. Question is, does it go up enough?
1 comment:
Testing
Post a Comment