A general problem with these analyses is that there is an assumption about individuals' propensities to save, but nothing about the inclination of state and local governments to save or use the money for tax cuts. So the Zandi estimates are not apples-to-apples.
Doubtless many states will spend every cent they get, others not so much. The willingness of the Congress -- especially the Senate, Dems included -- to target money to states in the worst shape is limited. So there is leakage from this channel as well, though I have yet to see it broached anywhere. That said, I'm personally for a big slug of dough to the states. This would also be a great time for a unified universal child tax credit, all of which I would daresay, would be spent. On Tue, Jan 6, 2009 at 10:15 AM, Louis Proyect <[email protected]> wrote: > http://krugman.blogs.nytimes.com/2009/01/06/stimulus-arithmetic-wonkish-but-important/ > January 6, 2009, 9:26 am > Stimulus arithmetic (wonkish but important) > _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
