"The stimulus has a big effect in 2010, but by 2012 the economy is roughly back to baseline (except for variables like the federal government debt). In the baseline case the federal debt rises from $5.78 trillion at the end of 2008 to $8.74 trillion at the end of 2012. In the stimulus case the debt at the end of 2012 is $9.34 trillion, about $600 billion more than in the baseline case. This does not take account of possible increases in the federal debt from the bailout activity.
So there is short run gain from the stimulus bill, mostly in 2010, but the potential long run costs do not seem trivial. If the stimulus bill is passed and the bailout continues, it may be that large tax increases will be needed starting in late 2011 or 2012."
But we knew that already, didn't we?
Via Greg Mankiw.
That is the entire purpose of this PORKLUS Bill. That and in case the Dimrats get thrown out the Republican's can never cut taxes. How else will they pay for the great Global Poverty Bill that "the One" submitted when he was in Senate but too busy running for POTUS to work for it's passage. Of course that is just part of the "needed" spending. Welfare payments must be included and those of course are disgused as tax refunds even though the lazy bums never filed or even earn enough to file.
ReplyDeleteI could go but you get the idea.
"I could go but you get the idea."
ReplyDeleteUnfortunately, I do.
But remember, according to Chuckie Schumer, the public doesn't......at least not yet.
Chuckie is hoping the masses will keep on drinking the Obamalama Koolaide and stay as stupid as he is.
ReplyDeleteTaxes makes slaves of free people. AS in, "I owe my soul to the company store". I believe that is Obama's purpose. BB
ReplyDelete