Monday, November 22, 2010

Great Article by Greg Mankiw

As Harvard professor of economic Greg Mankiw argues in his New York Times article, despite political rhetoric, there isn't necessarily much that is different between spending and tax expenditures. Republicans, in principle, should not object to "raising taxes" when that means eliminating tax expenditures that benefit particular and narrow interests. Similarly, Democrats should not object to all spending cuts; the question is always whether what we are spending money on worth the price we are paying.

Unfortunately, political rhetoric occupies its own domain which is often divorced from reality.

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