I agree with Barro. See my 10 February 2009 post about tax incentives, link: http://skepticaltexascpa.blogspot.com/2009/02/no-stimulus-tax-cuts.html.
Monday, March 2, 2009
Barro on Krugman and Taxes
Robert Barro, Harvard economics professor was interviewed by the Atlantic. The 11 February 2009 WSJ, has some excerpts: "I take it that you are fairly skeptical in general that fiscal policy will boost aggregate demand. Barro: Right. There's a big difference between tax rate changes and things that look like throwing money at people. Tax rate changes have actual incentive effects. ... Do you read Paul Krugman's blog? Barro: Just when he writes nasty individual comments that people forward. ... He just says whatever is convenient for his political argument. He doesn't behave like an economist".