Thursday, September 29, 2016

Adding bottlenecks to reduce multipliers

Summers: What is the policy implication? Principally, it is the macroeconomic importance of supporting middle class incomes. This can be done in a range of ways from promoting workers right to collectively bargain to raising spending on infrastructure to making the tax system more progressive. ...

OK, we are back to the Dem 'red line', their imposed bottleneck on government spending.  Union rights first, infrastructure spending second.  The debate here is about pension stuffing.   The Repubs do not want to go pension stuffing, but they have a bunch of tax bottlenecks to impose.  Multipliers in the Swamp are very low.

See this evidence of Chicago decline?  That decline is a direct result of bad multipliers, bottlenecks imposed by Larry Summers and his party.

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