On The Kudlow Report, David Stockman wants full-fledged fiscal austerity (spending cuts + tax cuts).
Kudlow comments further on the discussion.
John Tamny analyzes Paul Krugman's solutions to the recession.
From last week, Alan Reynolds responds to Ezra Klein on stimulus.
In The WSJ, Seth Lipsky explains how much salaries have declined in terms of gold.
In an April interview, George Gilder hopes Tea Parties will stress tax cuts not spending cuts.
David Wessell reports free trade's comeback.
CEO Ziad K. Abelnour argues we need the rich.
National Review's Kevin D. Williamson regrets extension of the homebuyer's tax credit.
U.S. Rep. Scott Garrett (R-NJ) suggests Fannie Mae and Freddie Mac is the root cause of the subprime crisis.
Liberal economist Josh Bivens makes the case for growth over deficit phobia.
Former Treasury official John B. Taylor opposes the financial reform bill.
David Stockman's diagnosis that the U.S. is in a "deep deflation" is amusing and his prescription of higher taxes (a VAT in addition to allowing the Bush tax cuts to expire) is simply a recipe for economic stagnation or worse.
ReplyDeleteI am amazed that he completely rejects the supply-side solutions of low taxes and sound money that pulled the country out of the 1970s malaise. And he had a front seat to it all as Reagan's first budget director!
I personally believe huge cuts in wasteful (and mostly unconstitutional) federal spending is way overdue and that it WOULD be economically stimulative. But that is not enough by itself of course. What is needed is pro-growth tax and trade policies coupled with a commitment to sound money.
It is most depressing that the GOP is not vigorously pursuing a pro-growth agenda to counter Obama's continued insistence on failed neo-Keynesian policies.
Pro-growth, supply-side policies that encourage and incentivize investment and work effort are the only way the economy will emerge from its ongoing funk.
The historical record is on our side.
Bob -- I agree. Politically, I think it's best to focus on growth with spending cuts as a secondary priority. Spending cuts are popular in the abstract but become less popular when specified, bogging the cutters down. See The WSJ editorial cited above.
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