Thursday, September 9, 2010

Economic Commentary via Paul Krugman and Martin Wolf:

Krugman:
Reiterates why the 2009 stimulus was not sufficient enough
Warns against repeating the same mistakes of 1938
Blasts the mere thought of extending the Bush-era tax cuts

Wolf:
On the political genius of supply-side economics
Obama was too cautious in fearful times:
So what is going to happen? I assume that, after the midterm elections, resurgent Republicans will offer new tax cuts and ignore the fiscal deficits. They will pretend that this has nothing to do with any reviled stimulus, though it is much the same thing – increasing fiscal deficits, thereby offsetting private frugality. That would put the administration on the spot. It would have to choose between vetoing the tax cuts and accepting them, so allowing the Republicans to get the credit for their “yacht and mansion-led” recovery. Any recovery is better than none. But it could have been much better than this. Those who were cautious when they should have been bold will pay a big price.

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