Policy Points Archive

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  • Policy Points: Congressional Budgets Pass Early Tests on Deficits and Economy, but Questions Remain
    April 3, 2009

    On the whole, the budget plans that the House and Senate approved yesterday pass the twin tests of: (1) beginning to address long-term deficits, or at least not making these deficits worse; and (2) not undermining the fiscal stimulus Congress recently passed. [i] The …
  • Criticisms of House Recovery Package Are Misplaced
    January 16, 2009

    Contrary to criticisms by some, the House economic recovery package unveiled yesterday is well designed to boost employment and the economy. It contains a number of spending measures crafted to inject more aggregate demand into the sagging economy over the next two years. It also contains tax measures that, while generally less effective as stimulus …
  • Policy Points: Sobering Jobless Data Highlight Need for Recovery Package to Focus On Hard-Hit Families and States
    January 9, 2009

    Since a decline in overall demand is the main cause of rising unemployment and the weak economy, the economic recovery package should focus on putting money in the hands of people who will spend it quickly.  Most economists agree that two cost-effective ways to do this are by helping hard-pressed families, such as those with low incomes and those that have experienced layoffs, …
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