Daily Archives: June 12, 2009 @ 8:29 am (Friday)

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 … Continue reading

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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 … Continue reading

Posted in Deficit, Fed, GDP, Government Spending | Tagged , |