Tax Stimulus and Impact on the Economy
The tax stimulus package is seen by many as a “quick fix” for the economy, but not addressing longer term issues.
But will it really fix the economy even short term?
In an article in U.S. News and World Report, Professor Cornwall suggests that a recession is likely despite the package. Or in the alternative, we’ll see a period of high inflation. He notes on his own blog about the stimulus package:
On the other hand, I am more worried that it will work. The pressures for a large burst of inflation are still out there — wage, healthcare and fuel price pressures and falling interest rates. If we over-stimulate the economy right now, we may end up in an even worse condition economically. Either way, be it a recession or a period of inflation, I see a tough period ahead for small business owners in America ….
He’s usually been an upbeat guy, so this is rather serious stuff coming from him.
February 13th, 2008 at 7:45 am
What’s “Econmy”?!
February 15th, 2008 at 12:56 am
Uh oh! Nice catch, Martin!
And I use a spellchecker in my browser, too! The problem is, I often don’t look at the title block, just the body of the post — I have to remember to check both.
February 18th, 2008 at 10:58 am
I have done the same thing. No worries!