Poor Policy
04/09/2014 | | Domestic policy, econ70, Economic forecasting, economist on radio, economist on TV, eisenberg and economics, Eisenberg and housing economics, Eisenberg and public speaking, Elliot eisenberg, Fiscal Policy, funniest economist, funny housing economist, Graphsandlaughs, graphsandlaughs and eisenberg, housing sales, MLS, mortgage banking, Multiple listing service, politics and economics, Public speaking economist
Policies that didn’t help the economy recover from the Great Recession include tax credits for business investment and the first-time home buyer credit which didn’t exclude new homes as they incentivized new construction when there already was excess plant and an oversupply of vacant homes. The lesson; in recessions encourage households to spend on services, consumer goods and existing items with excessive inventories. Capital spending should be left to government.