The US does fiscal stimulus like this fairly often.
In January 2008, Congress & President Bush sent $600 checks to each individual ($1,200 for joint tax filers) to stimulate the economy. I remember getting my check in the mail.
They also did this in June 2001 ($300-$600 'rebate' checks).
The American Reinvestment and Recovery Act in February 2009 included $400 per worker payroll tax credits for 2009 and 2010, immediately available in W-2 paychecks through lower withholdings. It was a classic Keynesian fiscal stimulus, clumsy but likely effective at speeding up our recovery.
I agree with the article's concerns that we've built an unsustainable hole in our ongoing budget, especially after the most recent tax cuts. We should not be operating at a deficit at this point in the economic cycle. We should be at a surplus, like we were in 1999/2000, in order to preserve some flexibility for the next downturn.
Will it tie our hands in the next recession? I don't think anyone really knows. I suspect we'll weather it better than most other global economies. US Treasuries remain the global safe asset of choice, which should keep borrowing costs down. We'll probably just emerge with an even more enormous debt burden.
In January 2008, Congress & President Bush sent $600 checks to each individual ($1,200 for joint tax filers) to stimulate the economy. I remember getting my check in the mail.
They also did this in June 2001 ($300-$600 'rebate' checks).
The American Reinvestment and Recovery Act in February 2009 included $400 per worker payroll tax credits for 2009 and 2010, immediately available in W-2 paychecks through lower withholdings. It was a classic Keynesian fiscal stimulus, clumsy but likely effective at speeding up our recovery.
I agree with the article's concerns that we've built an unsustainable hole in our ongoing budget, especially after the most recent tax cuts. We should not be operating at a deficit at this point in the economic cycle. We should be at a surplus, like we were in 1999/2000, in order to preserve some flexibility for the next downturn.
Will it tie our hands in the next recession? I don't think anyone really knows. I suspect we'll weather it better than most other global economies. US Treasuries remain the global safe asset of choice, which should keep borrowing costs down. We'll probably just emerge with an even more enormous debt burden.