Friday, June 10, 2011

Feldstein: Economy is even worse than recent numbers indicate

Not-so-cheery WSJ op-ed from Marty Feldstein earlier this week.  Of the anemic 1.8% GDP growth number for the 1st quarter, 2/3 of the growth came from increased inventories.  Also March was the only month with any significant growth.  Feldstein criticizes the stimulus package, fears of impending tax increases associated with Obamacare and the possible end of the Bush tax cuts in 2013, lack of progress on the debt, and concerns about the future value of the dollar.  Marty's preferred cure: tame the deficit by cutting government spending and eliminating certain deductions and exemptions from the tax code, a decrease in corporate and individual tax rates, and serious reform of Social Security and Medicare. 

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