Liberals Wanted Fiscal Stimulus. Conservatives Delivered It. [The New York Times]
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Source: The New York Times
Left-leaning economists hate the timing and the composition. But the expansionary fiscal policy they sought is on the way. Image President Obama discussed fiscal stimulus in a meeting with governors in 2010. At the time, Republicans were typically more focused on the debt. Credit Luke Sharrett for The New York Times By Neil Irwin Feb. 11, 2018 For years, many liberal economists have argued that a little more federal spending and a higher budget deficit would create a stronger economy. Now, they’re getting their wish, or at least a fun-house mirror version of it. All it took was total Republican control of the government. The fiscal austerity that drove the budget deficit from around 9 percent of G.D.P. in 2010 to 3 percent in 2016 has, for practical purposes, been abandoned. First, Republicans passed a $1.5 trillion tax bill in December that sharply cut rates on businesses. Then last week they made a deal to undo budget caps demanded by the Republican House in
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