Did the Bush Tax Cut Fail?
By Arnold Kling
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?