--- Seth Ackerman <sethia at speakeasy.net> wrote:
> From: "Doug Henwood" <dhenwood at panix.com>
>
> > Goldman Sachs Economics writes:
> >
> > >* Together with previously passed fiscal
> measures, our best estimate
> > >is that the latest federal tax cut package will
> provide stimulus of
> > >about $70 billion in 2003 and $50 billion in 2004
> (calendar years).
> > >The impulse is heavily concentrated in the next
> 12 months.
> >
> > That's about 1.2% of GDP, spread over two years.
> Significant, but not
> > gigantic. But all you gloomsters out there better
> add this variable
> > to your mental models.
>
> But the effect of the stimulus depends on the
> marginal propensity to spend,
> no? Didn't a couple economists recently estimate
> that the bulk of the last
> tax cut -- what was it? 75%? -- was saved?
>
> Seth
>
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