Economist N. Gregory Mankiew who writes many of the textbooks used in business school curriculum mentioned today that investment tax credits would have HUGE short term impacts on the economy and I can't believe team Obama isn't embracing this yet.
Probably because it doesn't work. Seriously though Mankiw is more honest than some of his fellow neoconomists but we had eight years of following their suggestions to a T and that landed us where we are today.
Clinton followed their suggestions in 1997 when the Republican Senate initiated the pro growth capital gains tax cut and this led to the boom of the late 90's. It's a common misconception that Clinton' tax hikes in the early 90's led to the later boom but this theory has been proven inadequate. The economy boomed in the late 90's in large part due to the Republican initiated tax cuts and remained so until Sept 11 2001.
