Maintaining Optimism in the Face of Reality. Occasional observations on the state of the world, society, business and politics. Usually anchored by facts, always augmented by opinion.
[O]n the economic front, especially when it comes to taxes and economic growth, the president's policies are more likely to bear fruit, according to Arizona's new Nobel Prize laureate.I think it's sometimes easy for people to forget who actually creates jobs, who decides if they should invest in their business, who decides whether or not to expand a company: it's nearly entirely people whose household incomes are over $200K. After all, there are only so many government jobs to go around. Hat tip to Instapundit.
"That's an easy one," said Edward Prescott, the Arizona State University professor who shared the 2004 Nobel Prize for economics.
"When you cut tax rates, employment always goes up," he said in a phone interview Monday with The Arizona Republic.
Prescott, speaking from Minnesota, where he advises the Federal Reserve Bank of Minneapolis, described Kerry's plan to roll back tax cuts for top wage-earners as counterproductive.
"The idea that you can increase taxes and stimulate the economy is pretty damn stupid," he said. [...]
Prescott also gave Bush the nod on another controversial campaign issue, dismissing Kerry's claims that outsourcing of jobs is damaging the economy.[...]
Prescott also backed the idea, espoused by Bush, to reform Social Security by allowing some workers to place a portion of their payroll taxes into private savings accounts.
Such an arrangement would give people greater incentive to work, thus leading eventually to higher tax revenue, Prescott said.
e-mail post | Link Cosmos | [Permalink] | | Tuesday, October 19, 2004