Why is America So Bad at Job Stimulus?

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Nov 9 2009, 11:52 am by Derek Thompson

Europe's policymakers, in contrast, appear to have a more coherent strategy: one which uses government money to subsidise a shortened work week, cuts labour costs and, in a few cases, offers tax subsidies to support new jobs. The OECD says 22 out of 29 of its member countries have extended support for workers on furlough, and 16 have cut payroll taxes and other social contributions. The countries doing these sorts of things are disproportionately in continental Europe (see article).

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Serioiusly, what can we conclude from that graph? What part of France and Germany do we wish to emulate? Todays unemployment trends, or the trends for the previous 17 years?

As for public work programs, I still haven't heard a single answer to my question as to why aggregate demand can be driven upwards by simply giving every tax return filer a $20,000 check. Really, I promise to spend my the instant I receive it.

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