tag:blogger.com,1999:blog-7439628176985419293.post2975483747364580341..comments2023-11-02T08:28:40.590-04:00Comments on Twenty-Cent Paradigms: The Rebate in RetrospectBill Chttp://www.blogger.com/profile/01081319025032071808noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7439628176985419293.post-40228803978342774542009-02-06T13:10:00.000-05:002009-02-06T13:10:00.000-05:00In principle, government spending is more effectiv...In principle, government spending is more effective than tax cuts at increasing aggregate demand, because part of any tax cut will be saved. And I also agree that we do need more public investment. <BR/><BR/>That said, the tax cuts can work faster than spending, since projects take time to get going, and if they are aimed at lower- and middle-income families who are living "paycheck to paycheck" more of the money will get spent. So I think the tax part of the Obama plan made sense as a complement to the spending but I definitely wouldn't go for a broad based tax rate reduction instead of spending, as the Senate Republicans seem to suggest.<BR/><BR/>While the "buy American" provision would prevent some of the spending from "leaking" to imports, I think that benefit is outweighed by the cost to our relationships with our trading partners. If everyone puts in "buy domestic" rules, we all end up losers, so I think its better not to start down that road, and I'm relieved they are watering down that part of the bill.Bill Chttps://www.blogger.com/profile/01081319025032071808noreply@blogger.comtag:blogger.com,1999:blog-7439628176985419293.post-24904781142816649542009-02-05T23:38:00.000-05:002009-02-05T23:38:00.000-05:00Do you feel that a full out spending plan in civil...Do you feel that a full out spending plan in civil projects, buy American, and, investing in renewable energy would be a better solution? That is no tax cut?Anonymousnoreply@blogger.com