Krugman and Recessions
7 August 2006
The Editor, New York Times
229 West 43rd St.
New York, NY 10036
To the Editor:
Paul Krugman unleashes a riot of confusing claims about the current state of the U.S. economy ("Intimations of Recession," August 7). Here's just one.
He endorses "fiscal stimulus" as means of avoiding recession. But he also continues to lament recent tax cuts. Because tax cuts (and the resulting deficit spending) are a classic means of fiscal stimulus, Krugman should now endorse further tax cuts. Better yet, he should abandon his Keynesian faith in increased spending as a magic cure for a slumping economy.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
The Editor, New York Times
229 West 43rd St.
New York, NY 10036
To the Editor:
Paul Krugman unleashes a riot of confusing claims about the current state of the U.S. economy ("Intimations of Recession," August 7). Here's just one.
He endorses "fiscal stimulus" as means of avoiding recession. But he also continues to lament recent tax cuts. Because tax cuts (and the resulting deficit spending) are a classic means of fiscal stimulus, Krugman should now endorse further tax cuts. Better yet, he should abandon his Keynesian faith in increased spending as a magic cure for a slumping economy.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Posted by Don Boudreaux on
Friday April 27, 2007 at 12:54pm