Thursday, January 24, 2008

The best fiscal stimulus:

Free public transit is the best fiscal stimulus. Tax cuts/rebates have a multiplier of 0.7, unemployment benefits are 1.7, whereas public transit investment has been estimated to have multiplier of 9.0.

Free public transit as a stimulus package would:
  • grease the wheels of commerce
  • have the effect of a minimum wage increase
  • reduce the need for expensive oil wars