Why do I get the feeling that today’s passage of the extension of the payroll tax reduction is a Republican Trojan horse? Why agree to legislation that further expands the deficit? Either reality trumps rhetoric or the GOP hopes that an expanded deficit along with a slowing economy will turn this Trojan horse into a mid-summer’s nightmare.
A number of analysts expect economic growth to cool through the rest of the year, probably no higher than an annual growth rate in GDP of 2%. This deal tacks on another $100 billion or so in deficits which could crowd out lending in the private sector.
Short term bail out for the unemployed now paid for by a slowing economy later. I hope not.