Spending Versus Tax Cuts: Who Pays the Cost of Political Compromise?

Publication Date:

Publisher: Center for Economic and Policy Research

Author(s): Dean Baker

Research Area: Economics

Keywords: Recession; Unemployment rate; Job creation

Type: Report

Coverage: United States

Abstract:

President Obama and the Democratic leadership will undoubtedly have to make some political compromises in order to get a stimulus package through Congress. However, it is important to keep in mind that there will be real costs associated with these compromises insofar as they result in a less effective stimulus package. A less effective package will mean less economic growth, which will, in turn, mean that fewer people will have jobs.