Re: Gore the Eliminator

[Christopher Niggle <niggle@xxxxxxxxxxxxxx>]

Sven:

If we believe in the "balanced budget hypothesis," a large balanced budget
can stimulate an economy as much or more than a deficit at a lower level
of expenditures with respect to the size of GDP.  Balanced budgets are not
necessarily bad.  Surpluses,however, can be bad, with respect to reducing
overall AD level.  Probably, most of us don't think that the surpluses
will actually obtain.

Chris

On Wed, 6 Sep 2000, Sven R Larson wrote:

> Quoting New York Times on the web today:
>
> "The Gore campaign issued an economic blueprint for the next decade,
> including a $300 billion rainy day fund and a commitment to eliminate
> the national debt."
>
> I'm having increasingly bad feelings about the fiscal policy that Gore
> is committed to. The article related to the above quote indicates that
> Gore is in to some clearly designed spending commitments. Europe has
> learned the lesson over and over again that when spending commmitments,
> handed out wholesale and retail, are up against equally bold
> budget-balance attempts, it is always the spending commitment that
> yields.
>
> I've been told that Gore's commitment to balancing the budget shouldn't
> really be taken seriously. Well, that may be true, but it may also be
> wishful thinking by PKTers who just can't see themselves vote
> Republican...
>
> Big government is not necessarily bad government, but from a Keynesian
> perspective it is far better to have a small government in the event
> some politicians set themselves to balance the budget, no matter what.
> The bad effects of such balancing efforts can do more damage to a
> society as far-reaching consumer-access warranting privatization.
>
> I'm surprised so few on this list seem to be interested in this issue.
> (Clifford Poirot is a notable exception!)
>
>
> banbudgetsurpluses,
>
>
> /srl
>
> --
> Sven R Larson
> PhD; Assistant professor of economics
> Department of Social Sciences, Bldg. 22.2
> Roskilde University
> Pb 260
> DK-4000 Roskilde, Denmark
> Phone: (+45) 4674 2910
>