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...defeat the purpose of the stimulus. Bush, for example, proposes to pump about $145 billion into the economy through tax cuts of various sorts. This is a classic Keynesian stimulus, and the whole purpose of that is to increase demand in the economy. Instead of a self-feeding spiral downward???I get laid off and can't pay my mortgage, so the bank fires you, and you don't buy a new TV, and so on?we get a self-feeding spiral upward: I take my government check and buy that new TV, Best Buy has the money to hire...

Author: /time Magazine | Title: Hair of the Dog | 1/24/2008 | See Source »

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