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".
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.
4 comments:
Hey Skep,
Did you coin the phrase "Zimbabwe Ben?"
You are #1 and #2 on Google search.
I've been using the phrase without attribution. Apologies!
Indeed, Krugman is a political hack for the Socialists, aka Democrats.
WCV:
The first use of the term "Zimbabwe Ben" was on 9 July 2008 at this blog by reader TVOH, http://skepticaltexascpa.blogspot.com/2008/07/helicopter-bens-no-confidence-vote.html. I give TVOH "credit" for the term. I accept your apologies on TVOH's behalf.
Tax incentives all the way. I am getting annoyed about the behavior of those that are viewed as important, when in reality, they are watching Rome Burn.
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