Payroll-tax cut equals growth. Consumer spending equals growth. Consumer spending is 70 percent of the economy. All growth is equal....
Payroll-tax cut equals growth. Consumer spending equals growth. Consumer spending is 70 percent of the economy. All growth is equal. These are the axioms that motivated lawmakers to secure an extension of a payroll-tax cut this month. But perhaps the axioms are wrong. Maybe payroll-tax cuts don’t equal growth. Perhaps they don’t matter to growth. Perhaps other steps generate better growth. Perhaps the evidence is right there before us, even at Boeing. Look at the data, then look at what else the administration is up to this season, and you’ll see the case for new axioms. The full text posted on Bloomberg.com here: http://www.bloomberg.com/news/2012-02-23/tax-cuts-must-create-growth-not-junk-spending-commentary-by-amity-shlaes.html This post was written by Amity Shlaes, Director of the 4% Growth Project. Find her on Twitter @AmityShlaes.
