Much of those so called tax cuts were actual expense items funded out of the budget, ie, first time home credits, energy creditsGoldenboy219;1059784090]It was far too small, and was made up primarily of tax cuts/breaks (the largest portion).
Obama tax cuts
Total: $237 billion
• $116 billion: New tax credit of $400 per worker and $800 per couple in 2009 and 2010. Phase out begins at $75,000 for individuals and $150,000 for joint filers.
• $70 billion: Alternative minimum tax: a one year increase in AMT floor to $70,950 for joint filers for 2009.
• $15 billion: Expansion of child tax credit: A $1,000 credit to more families (even those that do not make enough money to pay income taxes).
• $14 billion: Expanded college credit to provide a $2,500 expanded tax credit for college tuition and related expenses for 2009 and 2010. The credit is phased out for couples making more than $160,000.
• $6.6 billion: Homebuyer credit: $8,000 refundable credit for all homes bought between 1/1/2009 and 12/1/2009 and repayment provision repealed for homes purchased in 2009 and held more than three years. This only applies to first-time homebuyers.
• $4.7 billion: Excluding from taxation the first $2,400 a person receives in unemployment compensation benefits in 2009.
• $4.7 billion: Expanded earned income tax credit to increase the earned income tax credit — which provides money to low income workers — for families with at least three children.
• $4.3 billion: Home energy credit to provide an expanded credit to homeowners who make their homes more energy-efficient in 2009 and 2010. Homeowners could recoup 30 percent of the cost up to $1,500 of numerous projects, such as installing energy-efficient windows, doors, furnaces and air conditioners.
• $1.7 billion: for deduction of sales tax from car purchases, not interest payments phased out for incomes above $250,000.
But I do agree with you they blew it on how they spent the money but I disagree with you that it was too small. What did the Reagan stimulus cost the govt? Obama's fed his base and did nothing for the economy.
There you go again, charts and graphs. Do you ever get out into the real world talking to real people and seeing how real people live? Charts and graphs don't show human behavior$1.5 trillion spent with a multipler of 2 (i am assuming as a whole, the marginal propensity to consume domestic goods is 50%), spanned across 3 years would boost output by around $1 trillion a year on average.
In retrospect, the $800 billion stimulus (assuming the same MPCDG, and therefore the same multiplier) only accounts for (on average) $533 billion per year for 3 years.
Actual unemployment is much higher than the reported as discouraged workers, contract workers and closed small businesses aren't counted. Obama relies in the ignorance of supporters to spread misinformationThe Obama economic team blew it from the get-go, stating that unemployment would not even reach 9% WITHOUT stimulus! And with stimulus, it went all the way to 10.2%! This means they undershot the stimulus.
Different time and different world. No global economy then, war manufacturing, low GDP, low personal income, low cost of govt.Why? It worked during WWII when the government spent so much bloody money, the unemployment rate hit an all time low of 1.2% (10 years after the initial downturn). Why would it not work this time around?
What you show is that you are book smart but lack street sense as well as an understandin of human behavior. Your posts come right out of the textbook that ignores logic and common sense as well as personal behavior.Nonsense. I understand how our economy works, and the mechanisms within it far more than you ever will. The content of my post are representative of that.
The key is to turn the private sector loose not promote waste, fraud, abuse, and reward terrible behavior. The federal govt is ineffecient and has administrative costs that are way too high for the benefits received. I am amazed that someone as smart as you cannot see it.The early on Obama administration was trying to appease far to many sides of the political spectrum. The key is to invest in public works. Tax cuts will under-perform as a means of stimulus until the level of house hold debt as a % of GDP falls to around 60%. Remember, stimulus is always a short term fix, and saving tax proceeds does not boost the economy in the short term.
Regarding your chart, who measures household networth? How about people who aren't measured? What is the sample group? Where does personal responsibility lie in your world? Household debt is mostly a personal responsibility issue and the way out to liberals is to reward that behavior. You see today people get paid for two years not to work. Today people get rewarded for spending too much money by getting bailed out. Today people get ER services even though they have the opportunity to get healthcare. That didn't happen throughout history and the answer today seems to be doubling down.