We live in a service economy. There are more people providing business and professional services and working in retail than there are making goods or building things. The Democrats' stimulus package is, in a way, more oriented toward the economy America used to have - a manufacturing and industrial economy - than the information economy it has today. That's one reason why the plan is flawed, and why it probably won't do much to spur economic growth. That's also why public sector unions like the plan, and National Retail Federation does not. The Federation wants three national sales tax holidays instead, with the federal government refunding the money the states lose as a result. Not a bad idea, especially if paired with the payroll tax cut.
Matthew Continetti
The Two Economies
We live in a service economy. There are more people providing business and professional services and working in retail than there are making goods or building things. The Democrats' stimulus package is, in a way, more oriented toward the economy America used to have - a manufacturing and industrial…
Matthew Continetti · February 5, 2009
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