Glossary entry

English term or phrase:

fiscal bridge

English answer:

the use of the taxation system to bridge the gap...

Added to glossary by _floriana_
Jun 12, 2010 09:31
13 yrs ago
English term

fiscal bridge

English Bus/Financial Journalism economic stimulus
Certain counter-cyclical spending is vital on social grounds. But stimulus measures such as temporary tax cuts for households or car scrappage schemes were dispiriting wastes of scarce time and money. They reflected a hope that a temporary ***fiscal bridge*** would carry us back to consumption and housing-led growth – a dubious proposition since the old “normal” had been financially unsustainable.

Could you please explain what a fiscal bridge is? I can't find a definition...
Thanks!
f

Responses

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Selected

the use of the taxation system to bridge the gap...

between previous prosperity and the hoped-for revival of the economy to come.
Peer comment(s):

agree B D Finch : The gap being bridged is the lack of private investment in the economy.
3 hrs
Thank you.
agree Tina Vonhof (X)
5 hrs
Thank you.
agree British Diana
8 hrs
Thank you.
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4 KudoZ points awarded for this answer.
2 hrs

financial lending or spending to stimulate econmic growth

The term is now being used frequently in a negative connotation by those who believe that the financial stimulus plan of the US government has failed. However it simply refers to bridging (moving over) a problem with money.

NEGATIVE EXAMPLE:

The quest for 'shovel-ready' projects makes one think, Where's Senator Ted Stevens when we need him?" We need him back in the Senate authoring all kinds of bridges to nowhere bills! Anyway, "this fiscal bridge to nowhere is not spurring markets. ... [T]he best forecast currently on the table [for the economy] is the one made by investors risking their own money," which they are not. "They are shorting the stimulus.'" They're pulling money out of investment
http://www.rushlimbaugh.com/home/daily/site_022009/content/0...

POSTITIVE, FROM JULY 2008
What's needed is the political will to tighten the bureaucracy's belt in the near term, and the ingenuity to create a fiscal bridge to a recapitalized, healthier city. So far, Baltimore is sticking with its "capital punishment" policies and it's killing the city.

*Mr. Walters is an economics professor at Loyola College in Maryland. Mr. Hanke is a professor of applied economics at Johns Hopkins University and a senior fellow at the Cato Institute
http://freedomsfreefall.blogspot.com/2008_07_01_archive.html

A federal jobs bill expected to pass this week in Washington is expected to bring $2.3 billion in budget aid to New York state, and another $700 million to help counties and New York City.

Sen. Chuck Schumer said Monday the aid could help the state and counties to avoid cuts in spending, layoffs, or increased taxes.

"The state of New York's economy is fragile at best right now and the temporary relief ... comes at a critical time for both the state and the counties,'' said Stephen Acquario, executive director of the New York State Association of Counties. "At the same it acts as a fiscal bridge that will enable our state to get past this recession.''
http://www.wcbs880.com/ALBANY--Federal-Jobs-Bill-Would-Give-...

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