White House Declares Program That Lowers Savings as a Growth Package

Some in the free lunch supply-side camp confuse macroeconomic stabilization versus long-term growth in the strangest sort of ways. The White House is certainly guilty of that:

Today, President Bush announced his Administration reached a bipartisan agreement with House leadership on an economic growth package, and he encouraged Congress to deliver a bill to his desk as soon as possible to bolster the economy this year … The agreement reached today would allow Americans to keep more of their money to stimulate consumer spending. The growth plan provides approximately $100 billion in temporary relief that will allow Americans to keep or spend more of their incomes.

Consuming more of one’s income is the same as saving less. And this is their recipe for “growth”. Same old free lunch supply-side silliness!