When I began this blog in 2001, I was appalled by President Bush's headlong rush to an illegal war (we were not in fact under attack). As time wore on and Bush began his assault on the Constitution and any people bold enough to criticize, I believed that "the republic is endangered more by actions of our own government than by those of any terrorist." With the election of a high-minded, compassionate, intelligent man like Barack Obama, my fears have ceased.
"Honor them with peace, not war"
United for Peace
Saturday, August 02, 2003
Nobel Prize-winning economics George A. Akerlof in an interview in der Spiegel:
Copyright © 2001-03 Pam Shorey
(except the specific sources credited in quotes)
Nobelist calls Bush tax cuts irresponsible
Nobel Prize-winning economics George A. Akerlof in an interview in der Spiegel:
...A short-term tax benefit for the poor would actually be a reasonable stimulus. Then, the money would almost certainly be spent. But the current and future deficit is a lot less stimulatory than it could be. Our administration is just throwing the money away. First, we should have fiscal stimulus that is sharply aimed at the current downturn. But this deficit continues far into the future, as the bulk of the tax cuts can be expected to continue indefinitely. The Administration is giving us red ink as far as the eye can see, and these permanent aspects outweigh the short-term stimulatory effects.
....
The rich don't need the money and are a lot less likely to spend it - they will primarily increase their savings. Remember that wealthier families have done extremely well in the US in the past twenty years, whereas poorer ones have done quite badly. So the redistributive effects of this administration's tax policy are going in the exactly wrong direction. The worst and most indefensible of those cuts are those in dividend taxation - this overwhelmingly helps very wealthy people.
Palema
12:54 PM
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Copyright © 2001-03 Pam Shorey
(except the specific sources credited in quotes)
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