[lbo-talk] stimulative

Doug Henwood dhenwood at panix.com
Fri Jun 13 13:59:27 PDT 2003


Seth Ackerman wrote:


>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?

Yes that's a factor, and Goldman noted that in the full piece. Still, it's a lot of fiscal stimulus in a short time - and its maximum impact could be felt around, oh, November 2004.

Doug



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