IDEAS home Printed from
   My bibliography  Save this article

How Tax Distortion in the Global Economy Weakened the Obama Stimulus


  • Howard Wachtel


Why was the Obama administation's estimate of the jobs impact of the 2009 fiscal stimulus so far off? The economists used an average of Keynesian multipliers. But savings rose rapidly during the Great Recession, and the economists also underestimated leaks due to imports, partly the result of foreign investment by American companies, argues Howard Wachtel. Thus the multiplier was lower, but there are policies that can remedy that. He proposes policies to reduce the leakages.

Suggested Citation

  • Howard Wachtel, 2011. "How Tax Distortion in the Global Economy Weakened the Obama Stimulus," Challenge, Taylor & Francis Journals, vol. 54(6), pages 14-25.
  • Handle: RePEc:mes:challe:v:54:y:2011:i:6:p:14-25
    DOI: 10.2753/0577-5132540602

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:challe:v:54:y:2011:i:6:p:14-25. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst) or (Rebekah McClure). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.