The Need for a Stimulus Package Now
Publication Date: January 2008
Publisher(s): Tax Policy Center
Author(s): Alice M. Rivlin
Special Collection: John D. and Catherine T. MacArthur Foundation
Keywords: Taxes, the Budget, and the Economy; Economic Stimulus; Budget Issues; General Tax Policy
I am happy to be here this morning to urge Congress to enact a stimulus package quickly. In brief, I believe that: A well-designed stimulus package is needed now as an insurance policy to reduce the risk of recession or mitigate its severity if it occurs; The compromise worked out by the President and Speaker Pelosi is well-designed to stimulate spending quickly, because it focuses on low- and moderate income people, and should be enacted as soon as possible; The Congress should resist the temptation to delay the package by adding other elements, however worthy, at this time; Risks posed by the package?that it will aggravate inflation or add to the long-run deficit?are worth taking to help stabilize the economy in the months ahead.