Fwd: RE: Weisbrot: the Long Haul

Michael Pollak mpollak at panix.com
Sat Jan 6 12:12:42 PST 2001


On Sat, 6 Jan 2001, Doug Henwood wrote:


> I'm no fan of deficits in general; I like Jim O'Connor's old
> formulation that "debt increases capital's power over the state."
> Better to tax them instead.

On this, we are of course at one with mainstream and even right wing economists.

But the idea that monetary policy nowsemi-automatically balances out fiscal policy, so that there is no net drag or boost, is in the end a good argument for public spending over tax cuts. If neither has a net drag or boost, the former builds things the market won't, like everything wonderful on your list.

Michael __________________________________________________________________________ Michael Pollak................New York City..............mpollak at panix.com



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