« Hillary drops "BHO" reference | Main | AFP doesn't like conventions »

February 07, 2008


Once again, it is contextual; theoretically, if well timed tax cuts prevent the onset of a chain of events that result in a self-reinforcing spiral into a depression, they could very viably result in higher tax revenues than would have resulted had a depression occured. Brendan ... the answer remains it depends no matter who you site. And presented with this scenario, Mankiw would agree.

E.g., if Hoover had cut taxes to serve to prevent the 1930s depression, it would certainly have resulted in higher revenue.


The comments to this entry are closed.