This video applies the Permanent Income Hypothesis to the effectiveness of government stabilization policies aimed at boosting the economy during bad economic times:https://www.youtube.com/watch?v=GNFWCqJRZWg

The video implies that if the Permanent Income Hypothesis holds true then government stabilization policies would be ineffective. However, empirically, the data shows that for example, tax cuts/credits can encourage more consumer spending. How do you explain this?