Quote Of The Day
From the WSJ:
The bottom line is this: The available empirical evidence does not support the idea that spending multipliers typically exceed one, and thus spending stimulus programs will likely raise GDP by less than the increase in government spending. Defense-spending multipliers exceeding one likely apply only at very high unemployment rates, and nondefense multipliers are probably smaller. However, there is empirical support for the proposition that tax rate reductions will increase real GDP.
Government taking your money and spending it is less likely to help GDP than government taking LESS of your money and letting you spend the difference yourself.
Not that this is a new idea, of course… But it’s good to see some academic support.