Obama's Economic 'Jolt' Has No Power

Obama's Economic 'Jolt' Has No Power

'Stanford economist John Cogan: "The federal government tried public-infrastructure spending during the recessions of the 1970s and 1981, and it failed to bring about an economic turnaround.

The superior alternative, among a limited set of options, is permanent across-the-board tax rate reductions on capital and labor. Such reductions take time to work, but experience from the early 1980s and after 2001 shows they will work. Assistance to households facing economic hardship can and should be given. But policies that provide assistance shouldn't be confused with policies that will help turn the economy around," Cogan said.'