Friday, August 3, 2012

Krugman as a Tax Interventionist

Although he is trying to make a different point, even Paul Krugman is aware that U.S. spending is out of control and it won't matter who is in the White House. He writes:
Neither candidate is offering a realistic tax plan, because the fact is that the federal government is going to need more revenue than either is currently proposing.
Since Krugman is an interventionist, he is implying that taxes need to be higher, however, the real solution is less government spending a lot less, not more taxes. But the take away point here is that spending is out of control and will get worse.

And, as a Keynesian, what is Krugman doing hinting that taxes should be higher, when the economy is in the doldrums?  The man is becoming a total tax interventionist.

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