Tuesday, February 3, 2009

Pinata Politics

Stimulus Package: If You Jump Halfway Across a Chasm You Fall Into the Abyss

Jeffrey Sachs, the Columbia University economist who was instrumental in
transitioning the economic system of the former Soviet Union, is also no fan of
the stimulus bill, calling it a "a fiscal piñata," an "astounding mish-mash of
tax cuts, public investments, transfer payments and special treats for
insiders," and "a grab bag of hasty short-run spending." He warns that "without
a sound medium-term fiscal framework, the stimulus package can easily do more
harm than good." This is especially true, he says, "if we allow further tax cuts
during a time of fiscal hemorrhage, or give into 'bipartisan' demands to make
the Bush tax cuts permanent." ...keep reading...