Must be time for more tax cuts
CNN/Money has a special feature up, Jobless in America. I’ll have comments after I have time to read it (the day job is getting in the way), but in the meantime, here’s some titles of the stories in the feature:
For now, I’ll point out that the 6% number does not count discouraged workers–the unemployment rate is the number of active job searchers divided by (# active job searchers + # of employed people).
More importantly, I’ll also point out that tax cuts really do not benefit the unemployed. Sure, they may be stimulative and someday create growth and thus more jobs, but over the next few weeks and even the next few years, that effect is trivial. The long run benefits of tax cuts must be weighed against the costs of higher deficits and the concomitant expectations of future inflation. While any possible trickle down benefits of a tax cut accrue at some unknown point in the future, the recessionary effects of expectations of future deficits occur now.
X-Posted at It’s the Economy