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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: J_F_Shepard who wrote (624226)	8/13/2011 10:27:19 PM
From: TimF	Read Replies (1) \| Respond to of 1576642

TFowler, claim the CBO doesn't know what they are doing but you do... False. They know what they are doing, and I never said otherwise. They know they are assuming a positive multiplier of above 1. They just think its a reasonable assumption to make. That can be argued, I'm not so sure its reasonable, but I'm not arguing it. I pointing out that since they are assuming it in their calculations, that their calculations can not be evidence for it. Also the assumption of a multiplier greater than one is not a universal or uncontroversial assumption among economists. Different estimates (and BTW the CBO isn't making their own estimate of the multiplier in any formal sense, they are picking a number they like from other estimates), range from negative, to well over what the CBO uses in their estimate of the effect of the stimulus.