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More than ever, the American Project demands a strong economy

Brookings 2018.03.27
Although social and political divisions run deep, imagine how much more rancor would be churned up in a bad economy. Fortunately, at least at the “macro” level, the U.S. economy continues humming along, in its ninth year of expansion since the Great Recession of 2008-2009. Indeed, in an unusual twist, the debate over the 2017 tax bill had many Democrats (echoed by economists) saying the economy was already at or near full employment and thus didn’t need more fiscal stimulus. Republicans countered (and won) that the tax stimulus, especially the cuts in the corporate tax rate and the full expensing of investment expenditures, would expand the productive capacity of the economy by stimulating investment, and thus leave more room for expansion.

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