Atlantis Alumni

Friday, January 9, 2009

Obama's Republicanesque Economic Plan

Obama wants "broad bipartisan support" for his stimulus plan, so in order to get Republican support his plan includes tax cuts and tax incentives to businesses. Sounds like the Bush approach to the economy to me. What about infrastructure spending? As some critics have pointed out, Democrats to boot, giving businesses tax credits does nothing to promote consumer spending.

Krugman weighs in:

...the Obama plan just doesn’t look adequate to the economy’s need. To be sure, a third of a loaf is better than none. But right now we seem to be facing two major economic gaps: the gap between the economy’s potential and its likely performance, and the gap between Mr. Obama’s stern economic rhetoric and his somewhat disappointing economic plan.

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