Bush economics flunked, after long delay

Robert H. Frank, an economist at the Johnson Graduate School of Management at Cornell University, addresses the Bush administration notion that tax cuts for the wealthy will stimulate the economy in the New York Times. He writes that “the president’s claim that tax cuts to the owners of small businesses will stimulate them to hire more workers flies in the face of bedrock principles outlined in every introductory economics textbook” and that “inducing the wealthy to spend more on consumption” means spending on imports, not helping domestic employment. It would have been nice if he’d written this earlier.

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