It is a start for a plan


Obama offers

These estimates show that all components of the program make important contributions to job creation. The direct spending programs have the largest job bang for the buck. State fiscal relief also has important direct and indirect effects on jobs, and so very strong job bang for the buck. Tax cuts, though they have no direct jobs effect and generally affect consumer and firm spending only gradually, also have important job creation benefits by the end of the two-year window.2

It is important to note that the jobs effects of temporary broad-based tax cuts would probably be considerably smaller. Large proportions of temporary tax cuts are saved, blunting their stimulatory impact on output and employment. The prototypical recovery package only provides for the first two years of the Making Work Pay tax cut. Our analysis assumes that households treat the tax cut as permanent in determining their short-run spending.

This is a side issue. The outline has few details, but includes little caveats and assumptions that are different from grand announcements of certainty to the public.

Update: Examples of losing credit line?