Wednesday, January 07, 2009

Them Tax Cuts

This bit about the Obama tax cuts is interesting. But what is even more interesting is the question whether tax cuts now would help in fighting the recession.

I doubt it, because of the psychology of recessions. People won't spend those tax cuts, being afraid of times getting worse in the future. I understand that Obama will have to deliver on the tax cuts he promised, but that money would have been better spent through direct public sector projects.