Re: Krugman on the Deflation quagmire

[Warren Mosler <mosler@xxxxxxxxxxxxxx>]

AGREE, AND WHILE THEY ARE AT IT, OFFER A NATIONAL
SERVICE JOB TO ANYONE WILLING AND ABLE TO WORK.
AND DON'T 'PAY FOR IT' WITH A TAX INCREASE OR SPENDING
CUT!!!  IF THE POPULATION DOESN'T WANT MORE
PRIVATE GOODS, BUT WANTS TO WORK, LET THEM AT LEAST
PRODUCE PUBLIC GOODS...

ALSO NOTE:

> 	The Bush Administration has also recommended two
> solutions. First, tax cuts
> to the rich, which, as Krugman suggests, is likely
> to be insufficient since it
> provides additional funds to those"least likely to
> spend".

THIS IS ABSOLUTELY TRUE, BUT BEGS THE QUESTION, WHY
TAX SOMEONE IF IT WON'T REDUCE HIS SPENDING?  THE
VERY POINT OF TAXATION IS TO CREATE SELLERS OF REAL
GOODS AND SERVICES, ETC. SO THE AXE SWINGS BOTH WAYS.
TAXING SOMEONE WHO WASN'T GOING TO SPEND THE FUNDS
DOES NOTHING FOR GOVERNMENT OR THE ECONOMY THE SAME AS
CUTTING TAXES FOR SOMEONE WHO WON'T INCREASE SPENDING
DOES THE SAME NOTHING.

WARREN


=====
Warren Mosler, www.mosler.org
c/o James River Capital Corp
5007 Chandler's Wharf, Suite 201/202
Christiansted, USVI  00820
340-719-8813 office phone
340-719-8804 Fax
Primary email contact:  mosler@xxxxxxxxxxxxxx

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