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Politics : American Presidential Politics and foreign affairs

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To: Jim S who wrote (39734)	12/17/2009 5:47:52 PM
From: TimF	Read Replies (1) of 71588

I think a lot of the talk about specific multipliers, is somewhere between being overly (falsely) specific (as in we have a general idea, but want to give a specific number), to complete hogwash (as in who knows what it really is but this number sounds good and supports our argument...) But for those that want specific numbers the article I quoted has this "According to the Romers, each dollar of tax cuts has historically raised G.D.P. by about $3", which I don't think is unreasonable, except perhaps in being too specific (yes even the relatively vague "about $3", may be too specific, its not like you can just calculate out an economy and factor out any other influences). In any case if the goal is raising nominal GDP that isn't to hard (just print enough money), even if its raising real GDP there are all sorts of ways to do that in the short run, but nominal GDP can be meaningless in the context of policies specifically taken to boost it, and even real GDP isn't the real goal (cash for clunkers, or the rebuilding of New Orleans after Katrina, probably boosted GDP a bit in the short run, but destroying property in order to replace it isn't really a net plus)

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