Economic Policy in a Weakening Economy


	Economic Policy in a Weakening Economy

dmegivern

2-7-2008 8:44 PM

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://www.clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/9a6b8dfd-3d20-4bc6-bbcb-c1b90c324d89/FC6A26B3-EBA5-4C50-A084-4871AD9F2144/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.cbpp.org/1-8-08bud.htm" href="http://www.cbpp.org/1-8-08bud.htm" style="font-size: 11px;">www.cbpp.org</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.cbpp.org/1-8-08bud.htm"><P align="center"><B><FONT size="2" face="Arial">ECONOMIC POLICY IN A WEAKENING ECONOMY:
Principles for Fiscal Stimulus</FONT></B><FONT size="1" face="Arial">
By <A href="http://www.cbpp.org/staff/chad-stone.htm">Chad Stone</A> and <A href="http://www.cbpp.org/staff/kris-cox.htm">Kris Cox</A></FONT></P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.cbpp.org/1-8-08bud.htm"><DIV><I>Targeted </I>measures are those aimed at individuals and entities that will spend quickly the bulk of any new resources they receive.  Tax cuts that mainly benefit high-income individuals are poorly targeted to provide stimulus, because those individuals are more likely to save a large share of any increase in disposable income they receive than are people of more modest means.  Government-funded construction projects that take many months or even several years to get underway are poorly targeted as well.  In contrast, tax cuts and increases in government spending aimed at low- and moderate-income consumers and unemployed workers — such as tax cuts that provide a flat refund to all tax filers, additional weeks of unemployment benefits to workers who have been unable to find a new job, and increases in food stamp benefits — are far more effective as stimulus.</DIV></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.cbpp.org/1-8-08bud.htm"><B>How an Employment Trigger Would Work</B></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/FC6A26B3-EBA5-4C50-A084-4871AD9F2144/blog/" title="blog or email this clip"><img src="http://content7.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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