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Politics : American Presidential Politics and foreign affairs
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To: TimF who wrote (35702)6/2/2009 11:00:37 AM
From: DuckTapeSunroof  Read Replies (1) of 71588
 
Re: "I'm not saying it should be spent faster."

(Sounded that way....)

Re: "I'm using that blog post to point out how even if one thinks a stimulus is what's needed, the reality is that spending that much additional money takes a long time and so can't provide for a timely stimulus."

A) Guess that means that Congressional delaying tactics were even more ill-advised then usual, (given the lead-time it takes to get infrastructure spending pushed out into the real economy....)

B) Depends. No doubt the very *anticipation* of mega-money being deployed in the economy produces an immediate stimulative effect --- as investors and business persons almost immediately begin ACTING ON the certainty of that cash infusion heading their ways. Investors (smart ones, anyway) try to get out ahead of economic developments... to anticipate them. The markets seem to have clearly demonstrated that effect, as they started going up like a light switch had been flipped. (And, that is what the Fed Chair said in his latest speech, when he intimated that the 'animal spirits' of the markets had been reawakened.

Re: "tax cuts (with an immediate reduction in withholding)"

I understand your point about the immediacy (starts acting - albeit in an incrementally small way - immediately) of reductions in payroll withholding.

But remember --- around 40% or so of the "stimulus bill" consisted of a variety of tax reductions and tax breaks. No doubt, they too will have some stimulative effect.
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