134. Economists View
June 29, 2009 § Leave a comment
This is just terrible. Let’s decrease benfits for the bottom in order to not tax the top. Martin Feldstein writes
It would be wrong for the Obama administration and Congress to reduce the fiscal stimulus in 2009 or 2010, since there is no clear evidence of a sustained upturn. But it would be equally wrong to allow the national debt to double to 80 per cent of GDP a decade from now. Increasing taxes even more than proposed would weaken demand in the near term and hurt economic incentives in the long run. The fiscal deficit should therefore be reduced by curtailing the increases in social spending that the president advocated in his election campaign.
Higher braket taxpapers do not cut demand. It is ordinary people lower down who spend what they get and with more income and benefits keep demand higher. The hidden fact in the paragraph is whath he means by taxes. Is this lying, bad intent? Tthe workings of a mind can be strange.
via Economists View.