As a stimulus proposal, it's a non-starter. The economic impact is very, very small -- almost imperceptible. |
I don't think any benefit of the dividend tax elimination is worth the increase in the deficit. |
In Japan, for example, the debt deflation started in 1990 and price deflation started in 1992 or 1993. That's what we're in for right now. |
In the past two years, we've seen the budget go from surplus to deficit, adding about $400 billion of stimulus to the economy, but we've still lost 2.5 million private-sector jobs. |
It was not used this time, even though it was debated in Fed circles -- Greenspan opposed it. |
Powerful restraining forces are impacting the consumer, and this will result in slower growth in the latter part of this year and into 2005, |
Real income growth is deteriorating because of job losses, and income growth is going to remain weak until such time as it's reversed by a tax cut, which is months away at the earliest. Then there's a huge wealth loss [from the stock market] and no pent-up demand for goods. |
The corporate sector is highly leveraged, unprofitable and has excess capacity. Those are not the ingredients to produce a great deal of growth. |
The country is entering a period of debt deflation, where households and businesses are forced to move funds from spending to debt repayment. This forces down economic growth and reduces inflationary pressures and long-term interest rates. |
The economy's not doing well, so it's appropriate to do what you can. But the notion that deficit spending is a panacea is greatly over-advertised. |
The fact of the matter is that people's paychecks are thinner. In addition to that, they've had to pay higher taxes. |
The Fed has made a statement here that they are not going to allow higher energy costs to translate into inflation. |
The Fed was given control of margin lending in response to the excess speculation in the 1920s, |
The Fed's raising rates is highly doubtful, ... The road to recovery will be very difficult and very uncertain. Inflation will continue working its way lower. |
The Fed's raising rates is highly doubtful. The road to recovery will be very difficult and very uncertain. Inflation will continue working its way lower. |