Obama package a palliative, not a cure

Obama package a palliative, not a cure President Barack Obama has proposed a larger than expected $447bn package of tax cuts and spending increases, structured for maximum impact over the next year and focused on policies such as infrastructure investment that in the past have enjoyed a measure of support across party lines.

Many of the steps he has outlined – extending the payroll tax cut and unemployment insurance coverage, for example – will only prevent existing legislation from lapsing. Tax credits to stimulate hiring have been tried in the past, and economists are divided over their effectiveness. Aid to state and local governments, an important ingredient of the 2009 stimulus, did temporarily stave off large cuts in public sector employment but had little long-term effect on the private economy.
http://link.ft.com/r/EB8122/DWYFHU/KEIJMC/AMZEXL/R31LJ7/QR/h?a1=2011&a2=9&a3=9