US desperately needs another big stimulus: Paul Krugman
Q: Would you include a payroll tax cut? Would you look at extending the Bush tax cuts, would you look at corporate tax cut as part of that stimulus? A: On the last two definitely not because what is a temporary tax cut because we had a four depriment tax cuts. If you give a temporary tax cut to wealthy people who are likely be highly liquid, they are not going to spend very much of it at all. Give a temporary tax cut to corporation, which are sitting on positive cash, they are not going to spend any of it. So that's just ineffective stimulus. A payroll tax cut is not bad, it's putting money in hands of people who might well spend it, government spending is a good thing is probably the best thing, we have enormous infrastructure need in this country, which are not being met. Even aside for the need to stimulate the economy when the Federal government can borrow very cheaply that is a good idea to get some projects started. But basically I would take whatever we can and accept that those high end tax cuts, corporate tax cuts are sort of going where the problem isn't and that just a waste of money. Hope so From: skorydovmytaxassistant@googlegroups.com [mailto:skorydovmytaxassist...@googlegroups.com] On Behalf Of Dinesh Verma (Gmail) Sent: 02, 09, 2010 2:10 PM To: skorydovmytaxassistant Subject: Will it be helpful for the Indian economist? -- You received this message because you are subscribed to the Google Groups "Skorydov MyTaxAssistant Member Group" group. To post to this group, send email to skorydovmytaxassist...@googlegroups.com. To unsubscribe from this group, send email to skorydovmytaxassistant+unsubscr...@googlegroups.com. For more options, visit this group at http://groups.google.com/group/skorydovmytaxassistant?hl=en.
