Sunday, May 8, 2011

How Should We Think About Obama's Fiscal Policy?

link here to article

Greg Mankiw is very smart guy. After all, he teaches at Harvard, he headed up Bush's economic team for a brief period and he has written a widely used economics textbook. Accordingly, he is much more sophisticated in his method of attack on democratic policy. Dean Baker reviews one his NYT's Op Ed s and answers the questions that he has raised. He also exposes Mankiw's use of the Socratic method, instead of blatant lies to attack the administration. Its all about asking the questions for which you can provide the "right" answer. That is how they do it at Harvard where the students are too smart for demagoguery.

By the way, Dean Baker wonders why Mankiw compared our weak recovery with the recovery during the Reagan administration. The recessions were totally different so there is no real comparison. Implicit in the question is that the Reagan tax cuts were the better way to deal with recession.

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