Tax Cuts: The New Stimulus

"The only policy technique that has a shot [at increasing demand] is tax cuts—specifically cuts on the consumer side, since that would target the weak demand affecting businesses."

"The biggest problem in the U.S. economy isn't that businesses don't have enough money or that they can't get credit. Sales are the problem. That has been made clear over the past several months by large corporations hoarding cash rather than expanding and by listening to what small businesses are saying. American consumers simply aren't comfortable spending freely at this time, with so much uncertain about the future. Unfortunately, there's no easy path for the government to take in order to solve this problem."

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