Did the Bush Tax Cut Fail?
This group of economists with strong Democratic Party ties says that we needed fiscal policy that provided more stimulus in the short run and a lower deficit in the long run. Robert Solow says,
There are three characteristics you want a stimulus package to have. One – that it stimulates. Two – that it be temporary. And three – that it not pursue a partisan political agenda. Everything that the Bush administration has done has failed all three of those tests.
For Discussion. In December of 2000, I proposed $280 billion in temporary revenue sharing for state and local governments. Would this have met Solow’s tests?