Thursday, January 31, 2008

Robert Reich's Blog

We just added the feed from Robert Reich's Blog to the left hand column. I already mentioned in passing that the stimulus bill was garbage - he has a couple of recent posts talking about it, including this one:

"Perhaps the silliest part of an already silly stimulus bill is a provision giving corporations big tax deductions this year on the costs of new machinery, instead of spreading those deductions over several years, as is normally the case. The idea is to get businesses to invest in more machinery, which will stimulate the economy.

But accelerated depreciation, as it’s called, doesn’t work. Almost the same tax break was enacted in 2002 and studies show just about no increase in business investment as a result. Why? Because companies won’t invest in more machines when demand is dropping for the stuff the machines make. And right now, demand is dropping for just about everything."