Again, no BS here. The great Milton Friedman made this very point and past experience has confirmed it.
Here I give credit to Romney’s proposed solution, though of course in the best case he can’t do anything about it until ‘09. Romney has taken this herd-mentality demand and responded to it with solid, permanent tax cuts. If only W would have seen to do the same—and pair it with budget cuts!
Agree, tax cuts are better than rebates. Uncle Miltie’s income expectations theory explains why and every serious academic study has proved him right. So how about a cut in the payroll tax. That would put the money into the hands of those with a 100% propensity to spend. Now that would be a worthy stimulus plan right now.