Just this week Bob Murphy warned:
“By justifying tax cuts on the grounds that the taxpayers will go out and spend the money, these critics actually concede the entire case.”
And so today I see this:
“Eggertsson’s findings counter the argument that cutting taxes to put an extra buck in consumers’ pockets will boost their spending.”
Not that I think anyone here would doubt this outcome.
Also, I actually did a facepalm to this line:
“And with interest rates near zero, the Fed cannot cut rates further to fight deflation.”