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".

I agree with Barro. See my 10 February 2009 post about tax incentives, link:


W.C. Varones said...

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!

Anonymous said...

Indeed, Krugman is a political hack for the Socialists, aka Democrats.

Independent Accountant said...

The first use of the term "Zimbabwe Ben" was on 9 July 2008 at this blog by reader TVOH, I give TVOH "credit" for the term. I accept your apologies on TVOH's behalf.

VBPOutSourcing said...

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.