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Dec 15, 2009
This is Gregory Mankiw, writing in The New York Times:
Christina D. Romer, the chairwoman of the president’s Council of Economic Advisers, in work with her husband, David H. Romer, [found that] each dollar of tax cuts has historically raised G.D.P. by about $3 — three times the figure used in the administration report. That is also far greater than most estimates of the effects of government spending.
Other recent work supports the Romers’ findings.
4 Responses to “Obama’s Chief Economist vs. Obama’s Other Economists”
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Helium
December 15th, 2009 at 1:53 pm
Beyond the multiplier effect, $1 of tax cuts allows taxpayers to consume an additional dollar worth of goods and services they prefer.
Moreover, even if it were true that government spending stimulates the economy and raises GDP, stimulating demand for more bureaucrats doesn’t boost my happiness.
December 15th, 2009 at 2:36 pm
Obviously she was a lot better before she went to work for the Obama Administration.
December 15th, 2009 at 2:44 pm
She made immensely more sense when she was in the private sector.
December 15th, 2009 at 4:34 pm
Bottom line: she was a good economist, before she became a government economist.