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Spending Versus Tax Cuts: Who Pays the Cost of Political Compromise?

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Author Info
Dean Baker

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Abstract

President Obama and the Democratic leadership will undoubtedly have to make some political compromises in order to get a stimulus package through Congress. However, it is important to keep in mind that there will be real costs associated with these compromises insofar as they result in a less effective stimulus package. A less effective package will mean less economic growth, which will, in turn, mean that fewer people will have jobs.

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Publisher Info
Paper provided by Center for Economic and Policy Research (CEPR) in its series CEPR Reports and Issue Briefs with number 2009-01.

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Length: 3 pages
Date of creation: Jan 2009
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Handle: RePEc:epo:papers:2009-01

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Related research
Keywords: economic crisis; economic stimulus; fiscal stimulus;

Find related papers by JEL classification:
H - Public Economics
H5 - Public Economics - - National Government Expenditures and Related Policies
H6 - Public Economics - - National Budget, Deficit, and Debt
H2 - Public Economics - - Taxation, Subsidies, and Revenue
E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy

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This page was last updated on 2009-11-14.

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