Christina Romer, Chairperson of the Council of Economic advisers to Barack Obama, is an expert on tax cuts and recessions. She is a professor at UC Berkley and has written extensively on topics such as, "What Ends Recessions."
Romer and her husband are well-known macroeconomists — experts on the workings of the U.S. economy — who jointly hold one of six spots on the academic committee of economists that decides when recessions begin and end. They are both steeped in the history of the country's economy and have recently produced a series of papers looking at the causes and effects of most of the major changes in tax policy in the last 100 years.
So needless to say she is a pretty sharp tack. One of her findings in the research of how the US economy responds during recessions or depressions has to do with the effect of tax cuts and spending programs on such down turns. She concluded that for every $1 of Govt spending you get 1.4 in return. With every $1 of tax cuts you get 3 dollars of return in the GDP.
Her idea is that spending does little to help an economy while tax cuts have a much greater effect. Hopefully she is chewing on Obama's ear about this spending bill that is up for vote today. The reason there is little Republican support is because of the lack of tax cuts in the plan.
I encourage anyone interested in the economy to look up Christina Romer. The reading gets a little heavy at times, but what she has said about tax cuts makes sense.
http://www.aei.org/publications/filt...pub_detail.asp
http://www.usnews.com/blogs/capital-...-stimulus-plan
Romer and her husband are well-known macroeconomists — experts on the workings of the U.S. economy — who jointly hold one of six spots on the academic committee of economists that decides when recessions begin and end. They are both steeped in the history of the country's economy and have recently produced a series of papers looking at the causes and effects of most of the major changes in tax policy in the last 100 years.
So needless to say she is a pretty sharp tack. One of her findings in the research of how the US economy responds during recessions or depressions has to do with the effect of tax cuts and spending programs on such down turns. She concluded that for every $1 of Govt spending you get 1.4 in return. With every $1 of tax cuts you get 3 dollars of return in the GDP.
Her idea is that spending does little to help an economy while tax cuts have a much greater effect. Hopefully she is chewing on Obama's ear about this spending bill that is up for vote today. The reason there is little Republican support is because of the lack of tax cuts in the plan.
I encourage anyone interested in the economy to look up Christina Romer. The reading gets a little heavy at times, but what she has said about tax cuts makes sense.
http://www.aei.org/publications/filt...pub_detail.asp
http://www.usnews.com/blogs/capital-...-stimulus-plan
Senior Member
Her conclusions are wrong. For every $1 spent by government it ends up being less than $1 realized. Keynesianism doesn't take into account the waste on govenment jobs. Human nature plays a large part and workers naturally do less work when they know they are on a government job. The only thing that ends recessions are either tax cuts coupled with spending cuts or war. (WWII ended the Great Depression, not the New Deal)
www.mises.org
www.mises.org
Very good point... just look at the visitors center built in DC. It came in a hundred million bucks or so OVER budget and took twice as long to build. I'd have to agree that once the "infrastructure" projects begin the prices of them will all double and the time frame will be open ended. Hell they can't repave sections of highways without taking a 6 months.