$700 Billion for Wall Street, $700 Billion for Main Street?

A massive stimulus package could be on the way.

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 In an E-mail, liberal economist Dean Baker of the Center for Economic and Policy Research notes that if Americans push their savings rate from the current 1.3 percent to the post-WWII average of 8 percent, it would imply a fall in annual consumption spending of roughly $700 billion.

It just so happens that makes for a nice compromise number for a possible 2009 stimulus package from the Obamacrats. (I have bean hearing numbers from $500 billion to $1 trillion.)  Of course, Americans won't feel as impelled to save if we get a nice rebound in net worth from a new bull market in stocks, but that might not happen if we get higher investment taxes and the elimination of tax breaks for retirement plans. Hmmmm ....