11-14-2012, 07:13 AM
Art, as anyone observing the unfolding euro drama, the fiscal multiplier turns out to be way bigger than many thought. To some, this wasn't so surprising, especially under the present conditions in which either the private sector is deleveraging (US, UK, Spain, Ireland), there is no offsetting monetary ease because economies are in a liquidity trap (much of the rich world including Japan) or they don't have their own currency and monetary policy (euroland) or countries embark on joint austerity, exporting part of the negative effects to their trading partners, which reinforces the downward spiral (euroland).
About those higher taxes for job creators, I didn't post the following article before as I didn't want to piss people off, but here is Bruce Barlett's Krugmanesque article. Barlett (surprisingly) has the following history: Bruce Bartlett held senior policy roles in the Reagan and George H.W. Bush administrations and served on the staffs of Representatives Jack Kemp and Ron Paul:
http://economix.blogs.nytimes.com/2012/1...nt-refute/
About those higher taxes for job creators, I didn't post the following article before as I didn't want to piss people off, but here is Bruce Barlett's Krugmanesque article. Barlett (surprisingly) has the following history: Bruce Bartlett held senior policy roles in the Reagan and George H.W. Bush administrations and served on the staffs of Representatives Jack Kemp and Ron Paul:
http://economix.blogs.nytimes.com/2012/1...nt-refute/