Re: Lieberman on economics

[Sven R Larson <larson@xxxxxx>]

Peter Dorman wrote:
>
> I noticed a short piece in the NY Times today in which Joe Lieberman
> denounced Bush for his lack of understanding of economics.  Bush's
> failure, in JL's view, was his statement that he (Bush) would be
> willing to cut taxes and raise fiscal deficits during a recession.
> According to JL, this reveals ignorance.  Rather, during a recession,
> the most important thing is to balance the budget at all costs, so
> that interest rates don't rise!

I've been warning for this. Time to take the threat of federal fiscal
prudence under a Gore administration seriously, right?

> Now, I realize that mainstream economists have been drifting steadily
> toward the Treasury View over the last few decades, but I doubt
> they've gone that far.  Even if you slept through Econ 101 you would
> probably know that Lieberman is talking nonsense.

You want trouble in the next recession? Vote Gore. With him in the White
house, once the US economy hits the next recession you'll see your
government ad insult to injury with spending cuts and tax hikes because
IT WILL BE SEEN AS A VIRTUE to do precisely that. Voters are going to
like it if they know of nothing else. And who's gonna tell'em...?


Darn Keynesian,

/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