As the Stimulus Negotiations Continue...

While we believe that fiscal stimulus done right would be likely to help the economy, we also believe that a good stimulus package is hard to come by. We have expressed concern that fiscal stimulus might come too late to help the stalling economy and that a package might be loaded up with costly and unrelated items.

Initially, we were gratified as negotiations between the White House and the House of Representatives led to what we found to be a well-crafted, reasonable package including temporary targeted rebates and an expanded business deduction. However, we are concerned that as the process continues, unrelated items are being added to the package. Similarly, we are dismayed to see the price tag of the package increasing—not based on any economic rationale—but rather, as a means to accommodate different policymakers’ priorities. Playing politics with the stimulus package will not help the economy...

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