Fiscal Policy – Bang for the Buck
From the Economix blog in The New York Times -
Economix: Bang for Your Stimulus BuckThe Economic Policy Institute last week created a graphic with estimates of how effective various types of economic stimulus plans would be. The numbers come from Mark Zandi, an economist who, though a registered Democrat, is advising John McCain. Mr. Zandi testified before Congress in July about how to structure a second stimulus plan. This chart [...]
It might be best to see the chart on the actual blog page, but part of what it says is that fiscal policy alternatives – those initiated by Congress with their ability to change spending and taxes – that will have the most beneficial impact are food stamps, extending unemployment benefits, and spending on infrastructure are the top 3. Making the Bush tax cuts permanent, reducing capital gains and estate taxes, or providing a corporate tax cut would generate benefits less than the cost of the initiative.
I teach principles of economics courses and a course in the economics of healthcare at Southern Oregon University.