Daily Archive: Friday, June 12, 2009

deficits and future taxes

[Skip to the end] (email exchange) The latest noise is that today’s deficits mean higher taxes later. Answer: 1. Taxes function to reduce aggregate demand. 2. A tax hike is never in order with a weak economy, no matter how high the deficit or how high the interest payments may be. 3. ...Read More

National Journal Expert Blog debate on fiscal sustainability

[Skip to the end] What Is Fiscally — And Politically — ‘Sustainable’? By James K. Galbraith Professor of Economics, University of Texas June 11th —Chairman Bernanke may, if he likes, try to define “fiscal sustainability” as a stable ratio of public debt to GDP. But this is, of course, nonsense. It is ...Read More