... existing agencies are working full time administering the budgets they have. They can't just add a zero at the end of each contract and be done with it.Score one for tax cuts.
Stop looking at models and equations and theoretical constructs for a while and look at the practical considerations of the stimulus package. I've been doing this sort of thing for quite a while and I'm convinced it's doomed from the start. If they feel the need to blast a trillion dollars into confetti, then tax cuts would make the most sense. Even if the public used the money to pay down debt, that would be a good thing as it would transfer the debt burden from the consumer to the government making the consumer feel a little bit like spending again.
Sunday, December 21, 2008
Tax cuts vs. govt. spending
I have blogged about the broken window fallacy of government spending, as a theoretical matter. Now we get some practical advice on the difficulties of ramping up spending.