February 7, 2009

What the centrists have wrought

Paul Krugman, NY Times:

I’m still working on the numbers, but I’ve gotten a fair number of requests for comment on the Senate version of the stimulus.

The short answer: to appease the centrists, a plan that was already too small and too focused on ineffective tax cuts has been made significantly smaller, and even more focused on tax cuts.

According to the CBO’s estimates, we’re facing an output shortfall of almost 14% of GDP over the next two years, or around $2 trillion. [...] So the original $800 billion plan was too small, especially because a substantial share consisted of tax cuts that probably would have added little to demand. The plan should have been at least 50% larger.

click here for the entire article

It's a damn shame you have to have 60% membership of the Senate just to pass a bill that isn't even good enough to begin with, and if you've only got 59% that plan gets watered down even further.

Gee can't say I saw this coming...

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