A BETTER WAY TO STIMULATE

摘要

The economics profession is deeply divided about the usefulness of fiscal policy. While few doubt that tax cuts and increased government spending can spur growth, critics say that politicians are likely to opt for worthless pork rather than measures that do the most for the economy. That may be true. But with the economy turning sluggish, there are two possibilities for effective fiscal stimulus that might get the vote of both politicians and economists. First, the federal government could boost transfers to the states to head off looming budget cuts. Second, Congress could beef up the tax benefits for business investment that were enacted in March, 2002.