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View Diary: How to replace sequester cuts and balance the budget with progressive tax code reform (33 comments)

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  •  86 TRA changed the domestic investment (0+ / 0-)

    environment, then add tax breaks for outsourcing....

    And it had nothing to do with infrastructure, the Government used to spend 5% of GDP on infrastructure, while tax policy incentivized domestic investment perhaps as much as 2% to 3% of GDP.

    With 28 million unemployed or underemployed.....

    If we spend 5% of GDP on infrastructure, thats about 750 billion @ a multiplier of 2 to 2.5.  15 to 22 million jobs.

    We're short 6 to 13 million jobs.....

    If tax shelters added domestic investment that created jobs, I'll use a Multiplier of 1.5 to 2.0, (4% of GDP) 600 billion would create between 9 and 12 million jobs.

    5% unemployment might be 7 million, so 9-12 drops to 2-5 million jobs. About 100-250 billion in todays dollars.

    Somebody created those jobs, and seeing as how after the 86 TRA all 3 recessions had a jobless recovery, the lack of infrastructure spending doesnt account for the entire jobs deficit.

    Somebody spent about 1.6% of GDP, and unless you can come up with a better explanation than the 86 TRA, the 86 TRA remains the prime suspect.

    FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

    by Roger Fox on Thu Jan 24, 2013 at 09:22:11 AM PST

    [ Parent ]

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