Democrats have blasted most of the cuts as benefiting the wealthy at the expense of the nation's fiscal health. Democratic Congressman Chet Edwards asked Bernanke whether making the tax cuts permanent would provide the short-term economic stimulus that the Fed Chairman advocates.
"In your opinion, would making permanent tax cuts that are not going to expire for three years - would that have any significant impact on our present economic slowdown?" he asked.
Bernanke indicated he did not think so, but stressed he was not passing judgment on the merits of extending the tax cuts for the long-term health of the economy.
"Our discussion today is about short-term stimulus. And I think from the point of view of getting stimulus for the next few months, I think the evidence suggests that measures that involve putting money in the hands of households and firms that will spent it in the near-term, will be more effective," Bernanke said.
I'm sure people who don't like the government handing out money will all rise up against Bush's economic stimulus package, refuse to take that money and cry out the free market is not being allowed to do its good work.
