Tag: KORUS

Dec 07 2010

Korean Update

I know the story of the day is Obama’s spectacular cave on the Bush Tax Cuts for the Billionaires.  It is not by ANY DEFINITION a stimulus.

  1. Tax Cuts of any kind are the LEAST stimulative investments a government can make, in many cases producing negative returns.
  2. PEOPLE ARE ALREADY GETTING THIS MONEY!  This does nothing at all to introduce new Aggregate Demand.

Even the more charitable than I (and the CBO I might add) Paul Krugman estimates at best an improvement of 0.3 to 0.4% in unemployment.

But we can’t allow the new horrible to make us forget about the last horrible- that’s what they want to happen, so here’s an update on the horrible Korean Job Export “Free Trade” bill that got dumped on us Sunday, just two days ago.  My earlier piece is here.