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First enacted in 2010 and later extended, the payroll tax holiday was meant to be a temporary stimulative measure.
(These workers also took a sizable hit earlier this year with the expiration of the temporary payroll tax cut, which had been lowered by 2 percentage points for two years as a stimulative measure).
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We have a situation that calls for highly stimulative measures from the Federal Reserve.
Until then, as growth continues to slow, the authorities are likely to come up with yet more stimulative measures.
There's no absolutely no guarantee that Republicans would have gone along with any of these stimulative measures in lieu of flexibility from the White House on tax thresholds.
"It helps to encourage other countries to take more domestic stimulative measures to offset the negative impact of the rise of their currencies".
And it's particularly problematic right now, as Congress resumes debating whether to extend the payroll-tax reduction or enact other stimulative measures.
The Congress is a peculiar institution, one which may derail stimulative measures in the short term, and structural budget reforms in the longer term.
If Congress fails to extend key stimulative measures, it may saddle a vulnerable economy with a fiscal drag of more than two percentage points of growth.Europe's crisis looms larger still.
Some pundits think that if the economy continues to deteriorate, the government may yet announce a second, larger, set of stimulative measures, as it did in 1998, when the economies around Singapore collapsed.
In the short-run — depending on what happens with the markets over the next several trading days as well as with tomorrow morning's jobs report — the question becomes whether Mr. Obama attempts to exploit the crisis by calling for stimulative measures that were lacking in the deal he signed with Republicans.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com