Comments on: Dr. Krugman telegraphs the Left’s long-term fiscal strategy http://keithhennessey.com/2009/11/10/krugman-telegraphs/ Your guide to American economic policy Tue, 27 Jul 2010 13:47:00 +0000 hourly 1 http://wordpress.org/?v=abc By: Jim Glass http://keithhennessey.com/2009/11/10/krugman-telegraphs/comment-page-1/#comment-13281 Jim Glass Wed, 18 Nov 2009 20:43:18 +0000 http://keithhennessey.com/2009/11/10/dr-krugman-telegraphs-the-lefts-long-term-fiscal-strategy/#comment-13281 You fail to mention that a few years back Krugman told the <a href="http://www.atimes.com/atimes/Global_Economy/GE19Dj01.html" target="_blank">Asia Times</a> that the US has the finances of "a banana republic" and... "We should be getting 28% of GDP in revenue. We are only collecting 17%." ... which would be equivalent to about a 90% hike in income tax revenue. And that was before national health care and all the rest. For some reason, he hasn't ever had the nerve to say any such thing in his own column in the NY Times here in America (in spite of being the fearless truth-speaker that he pictures himself to be). Perhaps he thinks it would be tactically ill-advised for his political agenda? <div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('13281','Jim Glass'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('13281','Jim Glass','You fail to mention that a few years back Krugman told the <a href=\"http:\/\/www.atimes.com\/atimes\/Global_Economy\/GE19Dj01.html\" target=\"_blank\">Asia Times<\/a> that the US has the finances of "a banana republic" and... \n \n"We should be getting 28% of GDP in revenue. We are only collecting 17%." \n \n... which would be equivalent to about a 90% hike in income tax revenue. And that was before national health care and all the rest. \n \nFor some reason, he hasn't ever had the nerve to say any such thing in his own column in the NY Times here in America (in spite of being the fearless truth-speaker that he pictures himself to be). \n \nPerhaps he thinks it would be tactically ill-advised for his political agenda? '); return false;">Quote</a></div> You fail to mention that a few years back Krugman told the Asia Times that the US has the finances of "a banana republic" and…

"We should be getting 28% of GDP in revenue. We are only collecting 17%."

… which would be equivalent to about a 90% hike in income tax revenue. And that was before national health care and all the rest.

For some reason, he hasn't ever had the nerve to say any such thing in his own column in the NY Times here in America (in spite of being the fearless truth-speaker that he pictures himself to be).

Perhaps he thinks it would be tactically ill-advised for his political agenda?

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]]> By: The Left’s Long-Term Strategy in a Nutshell at Patriots for Freedom http://keithhennessey.com/2009/11/10/krugman-telegraphs/comment-page-1/#comment-13239 The Left’s Long-Term Strategy in a Nutshell at Patriots for Freedom Tue, 17 Nov 2009 02:29:06 +0000 http://keithhennessey.com/2009/11/10/dr-krugman-telegraphs-the-lefts-long-term-fiscal-strategy/#comment-13239 [...] Hennessey explains it: The strategy is [...]<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('13239','The Left’s Long-Term Strategy in a Nutshell at Patriots for Freedom'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('13239','The Left’s Long-Term Strategy in a Nutshell at Patriots for Freedom','[...] Hennessey explains it: The strategy is [...]'); return false;">Quote</a></div> [...] Hennessey explains it: The strategy is [...]
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]]> By: Maggie's Farm http://keithhennessey.com/2009/11/10/krugman-telegraphs/comment-page-1/#comment-13234 Maggie's Farm Mon, 16 Nov 2009 23:47:00 +0000 http://keithhennessey.com/2009/11/10/dr-krugman-telegraphs-the-lefts-long-term-fiscal-strategy/#comment-13234 <strong>Krugman telegraphs the Left's long-term strategy...</strong> Keith Hennessey gets it. The plan, when you think about it, is plain as day. ...<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('13234','Maggie\'s Farm'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('13234','Maggie\'s Farm','<strong>Krugman telegraphs the Left\'s long-term strategy...<\/strong>\n\nKeith Hennessey gets it. The plan, when you think about it, is plain as day. ...'); return false;">Quote</a></div> Krugman telegraphs the Left’s long-term strategy…

Keith Hennessey gets it. The plan, when you think about it, is plain as day. …

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]]> By: PMA http://keithhennessey.com/2009/11/10/krugman-telegraphs/comment-page-1/#comment-13176 PMA Sat, 14 Nov 2009 15:16:53 +0000 http://keithhennessey.com/2009/11/10/dr-krugman-telegraphs-the-lefts-long-term-fiscal-strategy/#comment-13176 Agreed and good points, which is why I qualified by saying it is not entirely Mitch Daniels fault. Should have said I don't believe he deserves the most blame or something to that effect. <div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('13176','PMA'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('13176','PMA','Agreed and good points, which is why I qualified by saying it is not entirely Mitch Daniels fault. Should have said I don't believe he deserves the most blame or something to that effect. '); return false;">Quote</a></div> Agreed and good points, which is why I qualified by saying it is not entirely Mitch Daniels fault. Should have said I don't believe he deserves the most blame or something to that effect.
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]]> By: PMA http://keithhennessey.com/2009/11/10/krugman-telegraphs/comment-page-1/#comment-13175 PMA Sat, 14 Nov 2009 15:15:41 +0000 http://keithhennessey.com/2009/11/10/dr-krugman-telegraphs-the-lefts-long-term-fiscal-strategy/#comment-13175 I didn't say Indiana is in worse shape than Michigan, I should've been clearer. By the state motto dig, I meant at least they are NOT Michigan, as in they are better off than Michigan. <div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('13175','PMA'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('13175','PMA','I didn't say Indiana is in worse shape than Michigan, I should've been clearer. By the state motto dig, I meant at least they are NOT Michigan, as in they are better off than Michigan. \n \n '); return false;">Quote</a></div> I didn't say Indiana is in worse shape than Michigan, I should've been clearer. By the state motto dig, I meant at least they are NOT Michigan, as in they are better off than Michigan.

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]]> By: srp http://keithhennessey.com/2009/11/10/krugman-telegraphs/comment-page-1/#comment-13173 srp Sat, 14 Nov 2009 00:41:04 +0000 http://keithhennessey.com/2009/11/10/dr-krugman-telegraphs-the-lefts-long-term-fiscal-strategy/#comment-13173 It's precisely because Indiana's economy is in such a bad state that Daniels's fiscal stewardship is impressive. It's relatively easy to hit fiscal balance during booms; a rising flood of revenue papers over all the waste and inefficiency in government. As for causality from fiscal policy to economic conditions in a state, the main effects are naturally long-term ones having to do with tax levels, regulations, and the general business climate. Cyclical swings like the current recession are hardly the responsibility of state governments that lack their own monetary policies. <div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('13173','srp'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('13173','srp','It's precisely because Indiana's economy is in such a bad state that Daniels's fiscal stewardship is impressive. It's relatively easy to hit fiscal balance during booms; a rising flood of revenue papers over all the waste and inefficiency in government. \n \nAs for causality from fiscal policy to economic conditions in a state, the main effects are naturally long-term ones having to do with tax levels, regulations, and the general business climate. Cyclical swings like the current recession are hardly the responsibility of state governments that lack their own monetary policies. '); return false;">Quote</a></div> It's precisely because Indiana's economy is in such a bad state that Daniels's fiscal stewardship is impressive. It's relatively easy to hit fiscal balance during booms; a rising flood of revenue papers over all the waste and inefficiency in government.

As for causality from fiscal policy to economic conditions in a state, the main effects are naturally long-term ones having to do with tax levels, regulations, and the general business climate. Cyclical swings like the current recession are hardly the responsibility of state governments that lack their own monetary policies.

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]]> By: John Allan Wilson http://keithhennessey.com/2009/11/10/krugman-telegraphs/comment-page-1/#comment-13172 John Allan Wilson Fri, 13 Nov 2009 21:16:58 +0000 http://keithhennessey.com/2009/11/10/dr-krugman-telegraphs-the-lefts-long-term-fiscal-strategy/#comment-13172 How about a link to that misery index by county. I have a hard time believing that Indiana is in worse shape than Michigan. Let's see your basis for the comment. <div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('13172','John Allan Wilson'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('13172','John Allan Wilson','How about a link to that misery index by county. I have a hard time believing that Indiana is in worse shape than Michigan. Let's see your basis for the comment. '); return false;">Quote</a></div> How about a link to that misery index by county. I have a hard time believing that Indiana is in worse shape than Michigan. Let's see your basis for the comment.
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]]> By: PMA http://keithhennessey.com/2009/11/10/krugman-telegraphs/comment-page-1/#comment-13169 PMA Fri, 13 Nov 2009 03:44:23 +0000 http://keithhennessey.com/2009/11/10/dr-krugman-telegraphs-the-lefts-long-term-fiscal-strategy/#comment-13169 Indiana is an economic disaster zone. A cursory review of the misery index by county is all one needs to confirm this. I'm not blaming this entirely on Mitch Daniels, but Indiana could use a massive jobs and infrastructure investment. This should be Indiana's state motto, "Indiana -- at least we're not Michigan" "According to the U.S. Environmental Protection Agency (EPA), Indiana industries, utilities and governmental facilities released 266 million pounds of toxic chemicals into the air, land and water in 2006. Only Alaska, with 18 times the land mass, and Ohio, with 181 percent the population, released more than Indiana." <div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('13169','PMA'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('13169','PMA','Indiana is an economic disaster zone. A cursory review of the misery index by county is all one needs to confirm this. I'm not blaming this entirely on Mitch Daniels, but Indiana could use a massive jobs and infrastructure investment. \n \nThis should be Indiana's state motto, "Indiana -- at least we're not Michigan" \n \n"According to the U.S. Environmental Protection Agency (EPA), Indiana industries, utilities and governmental facilities released 266 million pounds of toxic chemicals into the air, land and water in 2006. Only Alaska, with 18 times the land mass, and Ohio, with 181 percent the population, released more than Indiana." '); return false;">Quote</a></div> Indiana is an economic disaster zone. A cursory review of the misery index by county is all one needs to confirm this. I'm not blaming this entirely on Mitch Daniels, but Indiana could use a massive jobs and infrastructure investment.

This should be Indiana's state motto, "Indiana — at least we're not Michigan"

"According to the U.S. Environmental Protection Agency (EPA), Indiana industries, utilities and governmental facilities released 266 million pounds of toxic chemicals into the air, land and water in 2006. Only Alaska, with 18 times the land mass, and Ohio, with 181 percent the population, released more than Indiana."

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]]> By: John Allan Wilson http://keithhennessey.com/2009/11/10/krugman-telegraphs/comment-page-1/#comment-13167 John Allan Wilson Thu, 12 Nov 2009 16:50:17 +0000 http://keithhennessey.com/2009/11/10/dr-krugman-telegraphs-the-lefts-long-term-fiscal-strategy/#comment-13167 The state of Indiana is running a surplus under Governor Mitch Daniels. He did it by controlling spending and waste all up and down the budget. It really can be done by cutting costs. And the more employees the feds add, and they are already the largest employer in the country, the more long term problems we have. I visited California a couple of years ago and got a warning on the beach from a state employee about disturbing the seagulls habitat by walking through an area of the beach. I bet that dope still has a job. <div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('13167','John Allan Wilson'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('13167','John Allan Wilson','The state of Indiana is running a surplus under Governor Mitch Daniels. He did it by controlling spending and waste all up and down the budget. It really can be done by cutting costs. And the more employees the feds add, and they are already the largest employer in the country, the more long term problems we have. \n \nI visited California a couple of years ago and got a warning on the beach from a state employee about disturbing the seagulls habitat by walking through an area of the beach. I bet that dope still has a job. '); return false;">Quote</a></div> The state of Indiana is running a surplus under Governor Mitch Daniels. He did it by controlling spending and waste all up and down the budget. It really can be done by cutting costs. And the more employees the feds add, and they are already the largest employer in the country, the more long term problems we have.

I visited California a couple of years ago and got a warning on the beach from a state employee about disturbing the seagulls habitat by walking through an area of the beach. I bet that dope still has a job.

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]]> By: Brooks http://keithhennessey.com/2009/11/10/krugman-telegraphs/comment-page-1/#comment-13153 Brooks Wed, 11 Nov 2009 06:16:55 +0000 http://keithhennessey.com/2009/11/10/dr-krugman-telegraphs-the-lefts-long-term-fiscal-strategy/#comment-13153 PMA, I thought I posted my reply, but it's not showing up so I'll write it up again and post again. In general, we are to the left of the revenue-maximizing point on the Laffer Curve. In other words, in general, increasing tax rates would increase revenues, net of dynamic effects. Even conservative economists are in general agreement on this point. See my collection of quotes and excerpts at <a href="http://swordscrossed.org/diary/20081017/no-bush-tax-cuts-have-not-generated-higher-revenues" target="_blank">http://swordscrossed.org/diary/20081017/no-bush-t...</a> Even Dan Mitchell of Cato (formerly of Heritage) admits as much in this video <a href="http://www.youtube.com/watch?v=fIqyCpCPrvU" target="_blank">http://www.youtube.com/watch?v=fIqyCpCPrvU</a> He adds some spin, some misleading, cherry-picked historical data, and some misleading talk about capital gains tax cuts, but he says explicitly that it is rare for tax cuts to be revenue-neutral (to "pay for themselves"). <div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('13153','Brooks'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('13153','Brooks','PMA, \n \nI thought I posted my reply, but it's not showing up so I'll write it up again and post again. \n \nIn general, we are to the left of the revenue-maximizing point on the Laffer Curve. In other words, in general, increasing tax rates would increase revenues, net of dynamic effects. Even conservative economists are in general agreement on this point. See my collection of quotes and excerpts at <a href=\"http:\/\/swordscrossed.org\/diary\/20081017\/no-bush-tax-cuts-have-not-generated-higher-revenues\" target=\"_blank\">http:\/\/swordscrossed.org\/diary\/20081017\/no-bush-t...<\/a> \n \nEven Dan Mitchell of Cato (formerly of Heritage) admits as much in this video <a href=\"http:\/\/www.youtube.com\/watch?v=fIqyCpCPrvU\" target=\"_blank\">http:\/\/www.youtube.com\/watch?v=fIqyCpCPrvU<\/a> He adds some spin, some misleading, cherry-picked historical data, and some misleading talk about capital gains tax cuts, but he says explicitly that it is rare for tax cuts to be revenue-neutral (to "pay for themselves"). '); return false;">Quote</a></div> PMA,

I thought I posted my reply, but it's not showing up so I'll write it up again and post again.

In general, we are to the left of the revenue-maximizing point on the Laffer Curve. In other words, in general, increasing tax rates would increase revenues, net of dynamic effects. Even conservative economists are in general agreement on this point. See my collection of quotes and excerpts at http://swordscrossed.org/diary/20081017/no-bush-t...

Even Dan Mitchell of Cato (formerly of Heritage) admits as much in this video http://www.youtube.com/watch?v=fIqyCpCPrvU He adds some spin, some misleading, cherry-picked historical data, and some misleading talk about capital gains tax cuts, but he says explicitly that it is rare for tax cuts to be revenue-neutral (to "pay for themselves").

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