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Armed with this information and a few reasonable if not entirely uncontroversial assumptions about how the economy works, Zandi's firm has estimated the one-year impact on GDP of several stimulus proposals per dollar of spending or lost revenue; for example, a tax rebate like this summer's would generate $1.22 on the dollar. Extending unemployment benefits would bring in $1.63; infrastructure spending, $1.59; and a temporary increase in food-stamp benefits, $1.73. Making the Bush income tax cuts permanent would bring in just 31¢ on the dollar. So spending increases would seem to be in order. Bush...

Author: /time Magazine | Title: Will Washington's Stimulus Plan Work? | 11/13/2008 | See Source »

...question is what form the stimulus should take. Pretty much any kind can work--what finally put a definite end to the Great Depression was military spending in World War II. But some kinds are more effective than others. For the past eight years, tax cuts have been the favored means of pumping up the economy. There's much to be said for putting spending power in the hands of hundreds of millions of Americans rather than in those of a few bureaucrats, but there is a catch. People tend to save part of their tax rebates. In 2001 about...

Author: /time Magazine | Title: Will Washington's Stimulus Plan Work? | 11/13/2008 | See Source »

Infrastructure Housing Subsidies Disaster Rebuilding Environment Industry Transportation Tax Reform Health & Education Finance...

Author: /time Magazine | Title: The World | 11/13/2008 | See Source »

...This California contingent’s program of challenging tax-exempt institutions that visibly backed Proposition 8—including Mormon, Catholic and Orthodox Jewish religious organizations and groups like the Knights of Columbus—is a deserved one; these institutions have a responsibility not to lobby and fundraise substantially for any political cause, let alone the dubious one in question...

Author: By The Crimson Staff | Title: Equally Free | 11/13/2008 | See Source »

...terrorist attack and dealing with an economic crisis - Obama knows he doesn't have time on his side. His top priority will be stabilizing the financial system, he said in an interview with CNN shortly before the election, followed by investing in renewable energy, universal health care, middle-class tax cuts and education reform. Then there are the other things he talked about at various points in the campaign: closing Guantánamo, withdrawing from Iraq, renegotiating trade deals, reforming immigration. How quickly those now secondary goals will follow is a major question and source of debate among Obama...

Author: /time Magazine | Title: The Transition: What Change Will Look Like | 11/13/2008 | See Source »

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