In a few posts, we’ll begin digging through the evidence on taxation and economic growth. In the meantime, I just wanted to ask if you were familiar with:
- An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output? by Blanchard and Perotti?
- The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks, by Christina and David Romer?
Now, neither of those papers discusses the rich as its sole focus – but let me put forth a wild idea … don’t the Keynesians argue that in some cases, like today, it doesn’t matter what money gets spent on, just so that the money gets spent? And don’t the tax-the-rich folks argue that the rich waste their money on frivolities? That the rich don’t really get any happiness from their spending?
But the papers above suggest that multipliers on taxes are far larger than multipliers on government spending. That also must mean that the “shrinkipliers” must be larger for increases in taxes than they are for reductions in government spending. And we seem to agree that the rich do spend their money somehow. Well, if you are a dedicated Keynesian, and you understand that papers such as the ones above actually exist, then why do you care? Why are we trying to dress up the sentiments in economics when that has nothing to do with it?
I’m not familiar with those two works, but I have seen a ton of Hope/Change bumper stickers, so that still makes me an authority on the topic, right? 🙂
Every time they want money, they talk about the multiplier, the Keynseans’ version of writing home from college to finance the next weekend soirée. The ploy is for money to buy textbooks (Race to the Top), where the real reason is two nights at the Towne House Motel (biological research) and booze (organic chemistry lab expenses). When Robert Reich reminds Larry Kudlow, “Don’t forget the multiplier!” you know it’s going to be a one-night stand.
I was surprised to see an analysis of 1975 tax reductions, since those reductions escaped my scrutiny, even though I did my own taxes, plus another ream of schedules for a corporation incorporated in New York. I would have chosen the 1977-1985 period; just like Double Jeapordy! the prices doubled, and the scores really changed.
And no, the tax-the-rich folks are not going to pay the slightest attention unless the rate/revenue curve is a straight line. In this case Fritz Hollings and Paul Krugman are twins.
Great observation, Speedmaster!
I think the 1975 tax reductions must have been the relief from the Nixon “surcharges” in the earlier 70’s. Ford was not a believer in supply-side tax cuts, for sure. Whip inflation now!
I also have this theory that all of our economic woes since Phase II Price Controls have their roots in the Nixon Price Controls, where bureaucrats got the chance to peg the price of baler twine at $10 per bundle. You have to wonder where the price controllers worked after their mission was over? Did they stay in government and become drones at the Department of Energy?
Today it is chilly, so I am going to resurrect my hair shirt and cardigan sweater and have a conversation with mah liddle dawtah Amy in the Rose Garden.
Very astute observation Speedmaster. Reveals quick starkly their true agenda, which is power.
534123 126554If running proves to be a problem then it may possibly be wise to locate alternative exercises such as circuit training, weight training, swimming or cycling. 934823
454973 56085Hey, you used to write wonderful, but the last few posts have been kinda boring I miss your tremendous writings. Past few posts are just just a little out of track! come on! 449720
136816 582716Id ought to talk to you here. Which is not some thing I do! I quite like reading a post which will make folks believe. Also, a lot of thanks permitting me to comment! 514545
693679 948985I added this article to my favorites and program to return to digest far more soon. Its simple to read and comprehend as effectively as intelligent. I truly enjoyed my initial read via of this article. 213778
433539 528921Youre so cool! I dont suppose Ive read anything in this way before. So good to uncover somebody with some original concepts on this subject. realy appreciate starting this up. this exceptional web site is something that is required more than the internet, a person if we do originality. valuable function for bringing something new towards the web! 585904
677157 75701I wish I had a dime for every bad post Ive read lately. I also wish other writers had your talent and style. Thank you. 560960
550283 490208Yay google is my king aided me to discover this great web site ! . 120754
208551 65488I discovered your blog website on google and verify several of your early posts. Continue to maintain up the superb operate. I simply extra up your RSS feed to my MSN News Reader. Seeking for forward to reading extra from you in a while! 394893
597291 689574Cheapest player speeches and toasts, or perhaps toasts. continue to be brought about real estate . during evening reception tend to be likely to just be comic, witty and therefore instructive as properly. best man speeches free 145968
291711 125815Hey there! Good stuff, please keep me posted when you post something like this! 869119
852403 52081Some truly great content on this web internet site , appreciate it for contribution. 641579
930891 299920I like this internet site its a master peace ! Glad I found this on google . 819631
429312 33174I want to start a weblog written by a fictitious character commenting on politics, current events, news etc..How?. 318103
393877 843730I recognize there exists an excellent deal of spam on this blog website. Do you want assist cleaning them up? I can assist among courses! 885384