Interesting article by Bruce Bartlett:
According to Bartlett, Republicans are anti-Keynesians until they are running for office.
Quote from the piece:
In 2001, George W. Bush responded to the recession that began in March by proposing another tax rebate of $300 to $600, even though extensive research by the economists Alan Blinder and Franco Modigliani and Charles Steindel showed that the 1975 rebate had very little impact on growth.
Are tax rebates “Keynesian”? I supppose they are if they aren’t accompanied by cuts in spending elsewhere. Like the article mentioned, I also wondered about the effectiveness of one time rebates in stimulating the economy. It seems to me we need long-term solutions that provide stability and help people make long-term choices. That can’t be done with an extra $300.