Strategy for Economic Rebound: Smart Stimulus to Counteract the Economic Slowdown

Publication Date: January 2008

Publisher: Economic Policy Institute

Author(s): John Irons; Ross Eisenbrey; Lawrence Mishel

Research Area: Economics

Type: Brief

Abstract:

Because the United States is either already in a recession or is headed for one, policy makers need to act now to craft an effective economic stimulus package to spur growth and job creation. Without a stimulus of sufficient magnitude, the U.S. economy is likely to see a decline in growth or even a formal recession, leading to higher unemployment, declining or stagnant wages, and a host of other economic problems. A package that provides $140 billion of stimulus - 1% of GDP - would begin to reverse our economic course by creating an additional 1.4 to 1.7 million jobs.