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Whats the most effective way to avert an austerity crisis? More stimulus.

Taken as a whole, the tax hikes and spending cuts on the horizon would send us into a recession. But not all of the parts of the pending austerity crisis are created equal in terms of economic impact. So if the goal is to soften that blow to the economy, it's worth looking at which parts would be the most effective stimulus. For example, the Bush tax cuts for upper-income earners have a relatively weak multiplier effect, as a recent report from the Congressional Budget Office reveals: They wouldn't depress GDP by very much if they expire, and they wouldn't spur GDP growth by very much if they're extended (0.
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