"...Apparently, Team Obama is not convinced by the recent research of Christina and David Romer, who conclude:Hello Stimulus
tax changes have very large effects on output. Our baseline specification suggests that an exogenous tax increase of one percent of GDP lowers real GDP by roughly three percent. Our many robustness checks for the most part point to a slightly smaller decline, but one that is still well over two percent.
That is, Team Obama assumes that tax changes are less than half as potent in influencing the economy as the new CEA Chair estimated them to be in her own research.
Of course, it is prudent to take any research, including that of the very careful, very sensible Romers, with a grain or two of salt. The same can be said of the mainstream models on which Team Obama is relying.
I feel sorry for your smell, smoke and stream through your unbounded no-men’s land
Lure into a rotten flesh with a dress-coat assumption
Vultures in-waiting field of pork-barrel
A life of deflation seem to necessary course of your venturesome self-esteem
Basic calculation alone is not comforting
Rather preferred option for many
Make-it-easy take-it-easy
Under their nightmare under their cold sweat
Sewell well swell
Check-mate- messes
Dung dung tang
