For at least a few moments this week, President Trump suggested a payroll tax cut to stimulate the stalling macroeconomy. Although it appears that he has already changed his mind, it’s worth taking a look at the strategy...just in case.
Let’s say for sake of argument that the negative signals we have received of late are accurate. What should we do if we slip into full-fledged recession? Cut interest rates? Lower the budget deficit? Decrease payroll taxes? It turns out that the last one is the clear and easy winner. Why?Forbes — Pragmatic Economics
Three Reasons To Be In Favor Of A Payroll Tax Cut
John T. Harvey | Professor of Economics, Texas Christian University
"Your car tire doesn't explode when you put air in it because you reach your goal–and stop adding air–long before the pressure exceeds what it was engineered to withstand."
ReplyDeleteYou can't correct people making a reification error thru employment of even more figurative language...