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...easing off the brakes and hitting the gas again in an effort to stimulate growth. The central bank lowered its benchmark interest rate twice in the past 45 days, the first cuts since 2002. In mid-October, the State Council announced plans to increase infrastructure spending, to offer tax rebates for exporters and to boost government-controlled prices for agricultural products. Beijing is also widely expected to introduce measures to resuscitate the faltering property market, in an attempt to prevent a U.S.-style crash in home prices. The government announced on Oct. 22 that it would waive taxes on certain...

Author: /time Magazine | Title: How Will China Weather the Financial Storm? | 10/23/2008 | See Source »

Friedman wasn't a Keynesian at all. He distrusted government and didn't believe that bureaucrats could fine-tune the economy for long. His student Lucas offered another criticism: for Keynesian fiscal policy to work, taxpayers had to be awfully shortsighted. Otherwise, they'd see that deficit-financed tax cuts or government spending would eventually have to be paid for, and they'd set money aside for that rainy day--thus counteracting the stimulus...

Author: /time Magazine | Title: The Comeback Keynes | 10/23/2008 | See Source »

...also have enough left over to make a last-minute play for some deep red states as well. Republicans finally found a message to sink their teeth into, going after Obama's remark to Joe the Plumber that he wants to "spread the wealth around" with his tax policy and Joe Biden's suggestion that a President Obama would face a foreign crisis soon after taking office. The attacks didn't transform the race, but the rare Democratic missteps were efficiently exploited by the GOP. Republican strategists are worried about the spillover effect of all the new voters Obama...

Author: /time Magazine | Title: The Page | 10/23/2008 | See Source »

Wurzelbacher, who had questioned Obama on his tax policy, quickly ran into revelations that he'd probably get a tax cut under Obama, that he owed back taxes and that his first name was actually Samuel. But you can see why he made such an attractive campaign mascot. Joe the Software Consultant or Joe the Staples Manager would not tick off nearly as many populist boxes as Joe the Plumber: beefy, hails from the heartland, works with his hands. The kind of guy Chris Matthews, Bill O'Reilly and Joe Scarborough lionize as "regular" and "real...

Author: /time Magazine | Title: Election Coverage, and the 'Real' Issue | 10/23/2008 | See Source »

...zinger was just as short-lived as a home run. The debate moved on, the topics changed, and the one-liner became a soundbyte, not a game-changer.Joe the Plumber was also a good move. McCain was able to take a confusing argument about Obama’s tax plan and make it resonate in the age of the ten-second soundbyte. Although most Americans do not make $250,000 a year, many Americans aspire to do so. Thus, most are not excited to be burdened with extra taxes when they get there. Furthermore, McCain argued, if small businesses have their...

Author: By George Hayward | Title: Presidentiality | 10/23/2008 | See Source »

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