Fixing America's Economy: Nine Ideas from Around the World
From: Thailand
Idea: Cheap Rooms!
To get its economy going again in 2009, Thailand doubled the tax deduction for domestic hotel stays as a way to encourage people to get out and spend money. It was only a small part of Thailand's recovery package, but it caught people's attention. In an e-mail, Thai Finance Minister Korn Chatikavanij says, "These measures helped with morale and 'bought time' for us to do 2 things: 1) employ the main stimulus measures which were investment-based and, 2) wait for export demand to pick up thru global recovery, which they did." The U.S. has already resorted to similar gimmicks to goose demand: The 2009 stimulus package included, among other things, tax breaks for purchases of RVs. But the slow recovery suggests that American consumers need more incentives to spend
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