This is an Open Thread: Nothing is sealed in plastic
Economists Debate Efficacy of Stimulus Measures
In trying to assemble a bipartisan package to jolt the slumping economy, the White House and Congress have turned to familiar tools that experts say have worked in the past. But there is also a lively debate among economists about which measures will best accomplish the goal.
The favorite template for addressing recession fears is a set of tax measures and spending initiatives passed in 2001 and 2002, including a personal income tax rebate in the summer of 2001 that amounted to $300 to $600 per household and a tax incentive the following year aimed at encouraging businesses to invest in new plants and equipment.President Bush highlighted both those basic approaches on Friday in setting out his principles for a deal with Congress to address the current downturn. Democrats are also likely to seek increased spending for programs like unemployment insurance or to funnel more money to states, an approach that Mr. Bush signaled he would oppose.