No, not the Republicans: they have too many every day there to keep track of. Mine.
Two facts keep gnawing at me:
1) The economy needs more consumption. There is a huge shortage of aggregate demand.
2) But over the long run, one way to avoid bubbles is to have a higher savings rate, from which to develop greater investment.
How about this as a possibility? Enact a progressive consumption tax, of the kind that Ed McCaffrey or the RBC’s own Robert Frank have proposed, but write it so that it does not take effect for another five years.
To the extent that people respond to incentives, it will give people reason to spend now rather than hoarding, because future consumption will be taxed. And then the progressive consumption tax will kick in, fostering savings and investment.
No, it’s not a panacaea. Yes, I’m sure it’s full of problems. But it’s better than a whole lot of what the Masters Of The Universe have come up with over the last few years.