Who pays for that vacation? France has very generous vacation and their economy is stagnant. They even have a 35 hour workweek established based in the same premise. It hasn't worked. The economy is growing less than under Sarkozy.

We could also make the argument that cutting taxes would spur more spending. If you increase my disposable income, I'll buy some new studio monitors and an Allen & Heath mixer.

Just increasing vacation time results in a higher labor cost and thus raises prices, negating the benefit.