My tax prof colleague Ted Seto has a sobering analysis of "The End of Supply Side Economics", over at his new blog, Understanding Tax. Readers of ataxingmatter may well note a similarity to some of the issues frequently raised here--i.e., the long-term changes in our fiscal and economic policies under Reagan's marketarian "supply side" or "trickle down" theory and the fact that those changes have had some dire results. Ted's post focuses on the way U.S. borrowing is financed, something that is becoming soberingly worrisome as we borrow trillions to beef up spindly banks or jump start the economy (not to mention--pay for our grossly overweight military and defense budget).
Senator Charles Grassley has asked some important questions of Treasury Secretary Tim Geithner. See his Feb. 12, 2009 letter on the federal mortgage modification plan that may use a considerable amount of the remaining TARP funds.
Coberly, on Angry Bear, posts some much needed reminders on the fake "crisis" in Social Security, No Crisis in Sight, Feb. 19, 2009. And in related postings, rdan at Angry Bear probes the right's new push against "entitlements", Peterson is non-partisan?? and Fiscal Conservatives Begin Push Over Entitlements.
Mark Thoma's Economist's View has a lengthy analysis of the current housing discussion. Obama's Housing Plan, Feb. 18, 2009.
Donald Boyd has produced an analysis of the state of states after the economic stimulus money runs out: What Will Happen to State Budgets When the Money Runs Out?, The Rockefeller Institute of Government , Feb. 19, 2009. Boyd notes that state revenues tend to take several years to recover after a recession. While the states will undoubtedly benefit from the $150 billion stimulus through 2011, they will likely nonetheless face a significant fiscal gap--around 4% to 6% of general expenditures--in 2011-12 if they do not take steps while the stimulus is available to "spread out baseline spending cuts and/or tax increases they will need to make".
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