Stimulate the economy: CUT TAXES

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Cutting taxes should be a common sense way to bring this recession to an end sooner but sadly it's not. Read about it here.

These findings are backed up by a new study, "Large Changes in Fiscal Policy Taxes Versus Spending," authored by Alberto F. Alesina and Silvia Ardagna - both Harvard economists. Alesina and Ardagna find that:

...tax cuts are more expansionary than spending increases in the cases of fiscal stimulus. Based on these correlations...the current stimulus package in the US is too much tilted in the direction of spending rather than tax cuts.

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...cut taxes w/o spending decreases are just deficits tomorrow.

what's needed is an end to The People's Romance, and its ever-increasing calls for "things to be done" with "our" money.

(podcast here with my current professor, Dan Klein)

Unfortunately, this was never about stimulating the economy; it was about exploiting a crisis to increase government power.

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About this Entry

This page contains a single entry by Anthony Bradley published on November 7, 2009 9:30 AM.

Study: 90% of black kids will use food stamps was the previous entry in this blog.

How my favorite whipping boy--government bureauacracy--caused The Wall to come down. is the next entry in this blog.

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