Hippiekinkster -> RE: Republicans against stimulus,...ask for stimulus money (10/19/2010 6:57:45 PM)
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In a favorible lending environment, short-term jobs help create long-term employment. When people are hired for short or medium-term periods, they require additional supporting jobs to service them. More restaurants, more construction, more sales personnel, more insurance agents, and so on. This is a basic concept that knuckledraggers can't seem to grasp. With regards to the Stimulus package, "In congressional testimony given in July 2008, Mark Zandi, chief economist for Moody's Economy.com, provided estimates of the one year multiplier effect for several fiscal policy options. The multipliers showed that increased government spending would have more of a multiplier effect than tax cuts. The most effective policy, a temporary increase in food stamps, had an estimated multiplier of 1.73. Making the Bush tax cuts permanent, had the second lowest multiplier, 0.23. A payroll tax holiday had the largest multiplier for tax cuts, 1.29. Refundable lump-sum tax rebates, the policy used in the Economic Stimulus Act of 2008, had the second largest multiplier for a tax cut, 1.26.[3]" http://en.wikipedia.org/wiki/Spending_multiplier Germany's recent stimulus package has worked very well.
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