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

Dean Baker

CEPR Reports and Issue Briefs from Center for Economic and Policy Research (CEPR)

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.

Keywords: economic crisis; economic stimulus; fiscal stimulus (search for similar items in EconPapers)
JEL-codes: E62 H H2 H5 H6 (search for similar items in EconPapers)
Pages: 3 pages
Date: 2009-01
New Economics Papers: this item is included in nep-pke, nep-pol and nep-pub
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