The simple version of Keynesian economics suggests that if the economy is suffering from too little economic activity and high unemployment there are some policy options. Specifically Keynes suggests there are three general kinds of policy options: The central bank (The Fed in the case of the U.S.) could lower interest rates and create money … Continue reading Obama’s So-Called Keynesian Stimulus Efforts Aren’t Very
tax cuts
Politics and Job-Creation Policies – Disagreements and The Theories Behind Them
Blogging time has been in short supply lately. To compound things, I've had a bunch of inter-woven ideas bouncing around in my head that I want to explain, but I've been struggling to figure out how to do it. I've been stuck in the "can't explain this until I explain that which in turn needs … Continue reading Politics and Job-Creation Policies – Disagreements and The Theories Behind Them
The Public Debt Is Rising Because Of Tax Cuts and Wars
In past posts, I've emphasized that tax cuts don't really generate greater revenues for the government except under the most unusual circumstances. Tax cuts do exactly that, they cut the taxes available to the government. And that is one of the three big reasons why the U.S. government is running large deficits today and has … Continue reading The Public Debt Is Rising Because Of Tax Cuts and Wars
Gov. Rick Snyder Invokes the Magic Job Genie
The mantra of Republican governors (and in Congress) has been that taxes must be cut in order to create jobs. In previous posts I've dealt with the confusion about how federal level changes income taxes might or might not affect the strength of the economy. Most of the federal tax discussion focuses on individual income taxes. … Continue reading Gov. Rick Snyder Invokes the Magic Job Genie
Tax Cuts and Economic Growth, Once More – the Corporate Tax Version
The issue of tax cuts and economic growth, which I've discussed recently here and here, looks like it's going to be an important topic for some time now judging by this week's announcement from Paul Ryan, one of the Republicans in the U.S. House of Representatives. While all the attention in the media has been … Continue reading Tax Cuts and Economic Growth, Once More – the Corporate Tax Version
Tax Cuts, Tax Revenues, and Growth: Reconciling Theory with Evidence
Yesterday I made a post about how federal tax revenues have not increased as a result of the Bush tax cuts from 2001. Actually much of the post is based upon an analysis of official data that David Cay Johnston did. In the comments though, William Sullivan asks: I realize that economic growth, as measured … Continue reading Tax Cuts, Tax Revenues, and Growth: Reconciling Theory with Evidence
Pity the Rich. It’s So Hard to Get By.
A couple of items that remind me of the discussions last year about tax cuts. The major bone of contention in last December's tax cut deal was over whether the Bush era tax rate cut for the top income bracket should be extended. You may remember that it the Bush tax cuts were originally scheduled … Continue reading Pity the Rich. It’s So Hard to Get By.
Tax Cuts Do Not Increase Labor Supply
A central tenet of U.S. "conservative" and Republican economic policy since at least the election of Reagan in 1980 is that tax cuts cause people to work more and longer hours. This is part of the so-called "supply side economics". The implication is that the longer hours and more labor supply will then raise the … Continue reading Tax Cuts Do Not Increase Labor Supply
The “Tax Cut” Bill
I have problems calling the bill currently in Congress about tax rates a "tax cut" bill. Yes, there are some genuine "cuts". But most of it is fake cuts. Congress and the Bush administration made a promise 10 years ago to raise our taxes at this time. Now the current Congress decides to not actually … Continue reading The “Tax Cut” Bill
The Election Campaign Con Game: “Tax Cuts Pay for Themselves”
Continuing a series to help voters and everybody else cut through the nonsense, lies, garbage, and con games that has become American electoral campaigns – at least with respect to economics. The claim up for consideration now is the claim that by cutting taxes now (particularly for the wealthy, very high income earners, capital income … Continue reading The Election Campaign Con Game: “Tax Cuts Pay for Themselves”
EconProph 