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EconoMeter: Does the GOP have good economic fix?


Sunday, November 7, 2010

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Kelly Cunningham, National University System
Answer: Yes
All three actions help the economy. Voters essentially told the government the private sector is better suited to create jobs. Three specific additional steps:
(1) Payroll tax holiday - the cost to government from temporarily suspending payroll taxes will be far less than whatever stimulus spending costs, and much more effective in improving business and employment growth,
(2) This directly helps ease the overhang of consumer credit and housing debt, and allows or encourages banks easier lending to businesses and consumers,
(3) Ease regulatory burdens on small businesses through healthcare and financial reforms, and thicket of other government rules.