Posted by Sada Mosler on September 29th, 2008
Time for something they can all understand that would turn it all around like it never happened: a payroll tax holiday until the economy recovers.
It favors lower income workers.
It’s an immediate add to aggregate demand of over 3% per year annualized.
It lowers costs for businesses to help keep prices in check.
They can phase it back in to cool things down if the economy overheats.
And it would be a good time for Congress to put its full faith and credit behind promised social security checks regardless of the trust fund reserves.