Friday, January 31, 2003
Bush 1-Krugman 0-This from David Hogberg, who rips the Des Moines Register for raising Keynes-
The Register editorialists really need to do some homework. A tax cut designed to put more money in the pockets of consumers assumes that the problem with this economy is consumer spending. But a look at the Economic Indicators shows that consumer spending continued to grow even during the recession. What’s fallen is private domestic investment: It’s down almost $200 billion from its high in the second quarter of 2000. In other words, the problem with the economy is investment, not consumption. Tax cuts aimed at the top income-tax bracket and the double taxation of dividends are exactly the type of cuts that will spur investment.Interesting stats-much more tomorrow on this.
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