Filed under: Economics
I posted the other day asking why stimulus had to be deficit-funded rather than deficit-neutral. Ask, and the Internets shall provide! Brad DeLong points to the Economic Policy Institute’s “American Jobs Plan,” a deficit-neutral stimulus plan. Though it’s not really deficit-neutral in the way I was thinking: it spends $400 billion next year on new public-service jobs, COBRA extensions, and various other useful stuff, then pays it back over 10 years through a financial transactions tax. As DeLong points out, the problem with an FTT is that you have to institute it everywhere at once, “or Wall Street moves to Canary Wharf”.
(I kind of like that as an alternative Macbeth, with Nouriel Roubini, Paul Krugman and Nassim Taleb as the witches. “Until great Wall Street to Canary Wharf shall come!” And talk about “birther” controversies — I want to see the certificate that shows MacDuff was from his mother’s womb untimely ripped.)
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