Nobel Laureate Agrees With Your Humble PAD: I'm Really Shocked

PittsburghAfterDark

PittsburghAfterDark

CAGiversary!
WASHINGTON (AFP) - Edward Prescott, who picked up the Nobel Prize for Economics, said President George W. Bush's tax rate cuts were "pretty small" and should have been bigger.

"What Bush has done has been not very big, it's pretty small," Prescott told CNBC financial news television.

"Tax rates were not cut enough," he said.

Lower tax rates provided an incentive to work, Prescott said.

Prescott and Norwegian Finn Kydland won the 2004 Nobel Economics Prize for research into the forces behind business cycles.

The American analyst, who is a professor at Arizona State University and a researcher at the Federal Reserve Bank of Minneapolis, said a large tax cut in 1986 had lowered rates while collecting the same revenue.

But "in the early '90s the economy was depressed by the tax increase in '93 by about four percent, and it's right at that level now," Prescott said.

Bush, who is fighting to get re-elected November 2, has cut taxes by about 1.7 trillion dollars during his term.

The US leader accuses his Democratic rival John Kerry of favoring tax increases, despite Kerry's promise to cut taxes for everyone earning less than 200,000 dollars a year.
Link

Wow, this is the same thing I've been saying for years. Bush's tax cuts weren't enough.

I can't wait to hear all you know nothing economists show off how you were wrongly passed over for the Nobel Prize in economics and are far more knowledgeable than Edward Prescott.

Go ahead! Wonder tards.... activate!
 
Anybody can cut taxes and allow the deficit to keep rising. Why don't we just eliminate all taxes for a year or two and just let the deficit get bigger?
 
I'll tell you that they do count but their complaints have little or nothing to do with a Presidential budget submission but are general economic beliefs. Specifically the tone of the BBC article is focused on short term stimuli as opposed to "fairness". Now what's interesting is you choose to post an article that's nearly 2 years old.

For example....

"Regardless of how one views the specifics of the Bush plan, there is wide agreement that its purpose is a permanent change in the tax structure and not the creation of jobs and growth in the near term," the economists said in a statement published by the Economic Policy Institute.

Now here's the problem. Unless you're going to unload massive government spending on infastructure projects or make work no budget/bill will create immediate term employment. You're talking a Kenyesian scool of thought here which was a popular 20th century capitalist alternative to communism but far from Adam Smith's "invisible hand" and laissez-faire econmic school of thought.

"The permanent dividend tax cut, in particular, is not credible as a short-term stimulus," the statement said.

"Moreover, the proposed tax cuts will generate further inequalities in after-tax income," it said.

Point? It doesn't matter that cutting dividend income wouldn't lead to short term growth. That wasn't the purpose. It also is irrelevant that it would change inequaqlities in after tax income. America is not a nation based on income equality.

The purpose of cutting dividend taxes was fundimental fairness and encouraging capital to enter the stock market again. If Apple makes $100 million it pays taxes on it, it then distributes some of that money to shareholders as a dividend on their investment. That money has already been taxed once by the government.

Now if I made an investment in Apple, I put all of that money at risk. It isn't protected. My money created jobs, research, innovation with no guarantee of return. All things government can't do. So the profits from that company were taxed once, now we stopped the government from taxing it twice. That's fair.

"Overcapacity, corporate scandals and uncertainty have and will continue to weigh down the economy," they said.

True. 100% true. Uncertainty is the number one killer of a capitalist economic system. You can make money when stocks, bonds, currency go up or down. If you have no idea what's going to happen capital sits. That's the worst possible outcome. For an economy to function money needs to be in motion at all times and the more it moves, the better the economy.

The economists offered an alternative economic plan.

"To be effective, a stimulus plan should rely on immediate but temporary spending and tax measures to expand demand and it should also rely on immediate but temporary incentives for investment," they said.

Bottom line, they're Keneysian economists. They're always, ALWAYS, going to disagree with supply siders like myself and Edward Prescott. We're oil and water on the role of government in a capitalist society.
 
[quote name='PittsburghAfterDark']Bottom line, they're Keneysian economists. They're always, ALWAYS, going to disagree with supply siders like myself and Edward Prescott. We're oil and water on the role of government in a capitalist society.[/quote]

Yep. Isn't it interesting that there's so many more of them, though. Perhaps it has something to do with that position being right?
 
[quote name='PittsburghAfterDark']I can't wait to hear all you know nothing economists show off how you were wrongly passed over for the Nobel Prize in economics and are far more knowledgeable than Edward Prescott. [/quote]

I can't wait to hear how you were wrongly passed over for the Nobel Prize in economics and are far more knowledgeable than 10 Nobel Prize winners.

You have two groups of economists that disagree, fine. But one side is not more credible than the other, and if you want to use one group to make one party look good, you have to take the other that disagrees.
 
I'm almost beginning to feel sorry for PAD. Anytime he posts now its like seeing that one lone gazelle as the lions all tear into it. I'm not saying he hasn't brought it on himself but you get my idea...
 
[quote name='RedvsBlue']I'm almost beginning to feel sorry for PAD. Anytime he posts now its like seeing that one lone gazelle as the lions all tear into it. I'm not saying he hasn't brought it on himself but you get my idea...[/quote]

Would you prefer to wear the antlers and limp around for us? :wink:
 
Lower tax rates provided an incentive to work, Prescott said.


Umm... no.

If the company isn't taxed as much that dopesn't mean that the money is going to us in forms of raises.

What it does mean is that I get $300 back then have to buy $105 per sport at school and $150 just to park at school!

What a lovely tax cut.

It also means that the towns aren't getting as much money for firemen and police. So it takes them longer to get to fires and longer to get to the crime.

What a lovely tax cut.

I agree taxes were too high, but cutting taxes when we need the money for not thought out wars and sercuity isn't going to work.

But hey, we don't need money to protect ourselves from terrorist trying to kill us. Instead we will protect ourselves from the real threat, for much cheaper... gay marriage!!!

*Look down at my sig*
 
[quote name='MrBadExample'][quote name='RedvsBlue']I'm almost beginning to feel sorry for PAD. Anytime he posts now its like seeing that one lone gazelle as the lions all tear into it. I'm not saying he hasn't brought it on himself but you get my idea...[/quote]

Would you prefer to wear the antlers and limp around for us? :wink:[/quote]

Nice flame, you trying to get back at me for refuting your 2 threads today?
 
[quote name='RedvsBlue']I'm almost beginning to feel sorry for PAD. Anytime he posts now its like seeing that one lone gazelle as the lions all tear into it. I'm not saying he hasn't brought it on himself but you get my idea...[/quote]

When you have a group of desperate online liberals who have no idea how to deal with a human being but spend their day behind a keyboard spouting of venom against people and ideas they can't comprehend and don't understand what do you expect?
 
When you have a group of desperate online liberals who have no idea how to deal with a human being but spend their day behind a keyboard spouting of venom against people and ideas they can't comprehend and don't understand what do you expect?
Click to expand...
I see more venomous threads started by you than anyone else.
 
[quote name='PittsburghAfterDark'][quote name='RedvsBlue']I'm almost beginning to feel sorry for PAD. Anytime he posts now its like seeing that one lone gazelle as the lions all tear into it. I'm not saying he hasn't brought it on himself but you get my idea...[/quote]

When you have a group of desperate online liberals who have no idea how to deal with a human being but spend their day behind a keyboard spouting of venom against people and ideas they can't comprehend and don't understand what do you expect?[/quote]

Oh poor, poor you. Really I'm crying for you. Hey PAD, do me a favor ok? Cry out that the Liberal Media is trying to silence you meanwhile I turn on the radio and hear Sean Hannity speak or turn on the Fox News Channel or radio and hear Bill O'Reilly talk.
Tell me PAD where do you see the Liberal side get the free airplay AND get paid for it? Oh that's right! You don't. That's because it doesn't exist except for 1 show being nationwide, Democracy Now!. Don't try to tell me NPR is that because they're way too nice and play it too safe to my taste.
Sorry ya'll just got annoyed with him.
Oh yeah and look at Pat Buchanan. See what happens when your Conservatives don't agree with Bush and Iraq. When's the last time you heard him. I heard him recently but he hasn't been heard BIG it seems or maybe that's just my opinion.
 
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